5.16 ndian onom
(i) The PC be scrapped and replaced with allocation of centrally collected revenue
the Reform and Solutions Commission to the states and the finance ministry be
(RSC), which should be staffed with tasked with the division of funds among
experts with domain knowledge and kept the various central ministries.
free from any ministerial administrative The recommendations of the IEO (a
structure. The new body should have
brainchild of the PC itself) on the PC were quite
full-time representation of major trade
surprising, even shocking to few. Whether the new
and industry organisations, civil society
body replacing the PC will be a betterment over
representatives, academics, etc., so as to
capture their concerns and benefit from the latter and will be able to carve out its desired
their expertise in formulating long–term aims is a matter to be evaluated and analysed in
strategy. future. Meanwhile, we can visibly find some of
(ii) The RSC will perform three main the recommendations of the IEO resonating in
functions: the newly created body, the NITI Aayog, the
replacement for the PC.
(a) Serve as a solutions exchange and
repository of ideas that have been [Note: While a detailed literature has been
successful in different aspects of included on the ‘NITI Aayog’ in this edition (as
development in various states and the last sub-topic), the literature on the PC has
districts, and in other parts of the been left unchanged for ease of understanding and
world; comparative purpose.]
(b) Provide ideas for integrated systems
reform; and nAtIonAL dEVELopMEnt councIL
(c) Identify new and emerging challenges
The National Development Council (NDC)
and provide solutions to preempt
them. was set up on August 6, 1952 by a Resolution59
issued from the Cabinet Secretariat. The first Plan
(iii) The current functions of the PC be taken
recommended its formation with a very concise
over by other bodies, ‘which are better
designed to perform those functions’. and suitable observation:
(iv) Since the state governments have better “In a country of the size of India where the
information about local requirements and states have under the constitution full autonomy
resources than the central government within their own sphere of duties, it is necessary
and central institutions, they should to have a forum such as a National Development
be allowed to identify priorities and Council at which, from time to time, the Prime
implement reforms at the state level, Minister of India and the Chief Ministers of the
independent of mandatory diktats from states can review the working of the plan and of its
the central institutions. various aspects.”60
(v) The task of long-term economic thinking There were some strong reasons why the
and coordination can be performed by NDC was set up, which may be seen as follows:
a new body established to act solely as a
‘think tank’ within the government. 59. Cabinet Secretariat, Resolution No. 62/CF/50
(06.08.1952) Government of India, New Delhi.
(vi) The Finance Commission be made 60. Planning Commission, First Five year Plan: A Draft Outline
a permanent body responsible for the (New Delhi: Government of India, 1957), p. 253.