In India, Planning Commission was set up in year _______.
- AOption (a)
1965
- BOption (b)
1955
- COption (c)
1950
- DOption (d)
1960
- EOption (e)
1951
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Correct answer
1950
Why this answer is correct
The correct answer is 1950.
Key Points
- The Constitution of India had a firm inclusion of the need for ‘Economic and Social Planning. After independence, the stage was set for the formal launching of planning in the country.
- For economic planning for the whole economy at the national level, the requirement of a permanent expert body was felt.
- Thus, in March 1950 the Planning Commission (PC) was set up.
- The PC was set up by a Cabinet Resolution.
- Few important points about the Planning Commission are:
- It was an extra-constitutional (i.e., non-constitutional) body which was a non-statutory body too.
- It was a type of an advisory body to the Government of India.
- PC was a ‘think tank’ for economic development.
- Its ex-officio chairman was the Prime Minister, it also had a provision of a Deputy Chairman.
- The function of the DC was to co-ordinate the work of the commission.
- It had no cap on the number of members, as many area experts are required by the particular proposed period of planning.
- Autonomous body entitled to form their own views on important issues and place them before the governments. PC worked closely with both the central and state governments.
- The ‘demand for grants’ for PC was included in the budget demand for the Cabinet Secretariat.
- On January 1, 2015, the important era in the economic history ended when the Planning commission was abolished by the government and in place of it a newly created body—the NITI Aayog was established.