Policy Think Tank of India and about Rajasthan Planning

NITI(National Institution for Transforming India) Aayog

  1. NITI Aayog was formed on Jan 1, 2015, is a government policy think-tank by replacing the Planning Commission.
    1. Think-tank:
      • Experts brought together to provide advice, suggestions and ideas on specific social, political and economic problems or issues.
  2. Aim:
    1. To achieve Sustainable Development Goals(SDGs) with Cooperative Federalism by fostering the State Government’s involvement in the economic policy-making process using a bottom-up approach.
      1. What are the Sustainable Development Goals? (https://www.undp.org/content/undp/en/home/sustainable-development-goals.html)
        1. The SDGs, also known as the Global Goals, adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
      2. What is Cooperative Federalism? (https://niti.gov.in/planningcommission.gov.in/docs/plans/planrel/fiveyr/9th/vol1/v1c6-1.htm)
        1. Cooperative Federalism:
          •  In a vast country like ours, the spirit of co-operative federalism should guide the relations between the Centre and the States on the one hand, among different States and between the States and the Panchayati Raj Institutions (PRIs) and the Urban Local Bodies (ULBs) on the other.
  1. Initiatives/action taken by Niti Aayog:
    1. Three-year action agenda(2017-18 to 2019-20)(http://niti.gov.in/writereaddata/files/coop/IndiaActionPlan.pdf)
      • This offers ambitious proposals for policy changes within a relatively short period. It is understood that while some are fully implemented during the three-year period, implementation of others continues into the subsequent years. Where relevant, we have included possible actions by the states to complement the efforts of the Centre.
    2. 15-year road map
    3. 7-year vision
    4. AMRUT
    5. Digit India
    6. Atal Innovation Mission
    7. Medical Education Reform
    8. Agriculture reforms
      • Model Land Leasing Law
      • Reforms of the Agricultural Produce Marketing Committee Act
      • Agricultural Marketing and 
      • Farmer Friendly Reforms Index for ranking states
    9. Indices Measuring States’ Performance in Health, Education and Water Management
    10. Three sub-groups of Chief Ministers on Rationalization of Centrally Sponsored Schemes, Chief Ministers on Swachh Bharat Abhiyan and Chief Ministers on Skill Development
    1. Task Forces on Agriculture and up of Poverty, and Transforming India Lecture Series
  1. Niti Aayog has 2 hubs:
    1. Team India Hub: 
      1. It leads to the participation of Indian states with the central government.
    2. Knowledge and Innovation Hub: 
      1. It builds the institution’s think tank capabilities.

Objective and features(https://niti.gov.in/index.php/objectives-and-features)

Pillars of Niti Aayog

Composition

  1. Chairperson: PM
  2. Governing Council: CM of all state + Lt. Governors of UTs
  3. Regional Council: 
    • PM(Summoned)
    • Consists of CM of the states + Lt. Governors of UTs
    • Chaired by the Chairperson of the NITI Aayog or his appointed nominee
  4. Special invitees:
    • Eminent experts, a specialist with relevant domain knowledge, which the PM will nominate
  5. Full-time Organisation Framework:
    • Chairperson: PM
    • Vice-Chairperson: appointed by PM
    • Members:
      1. Full time
      2. Part-time: Max. of 2 members from foremost universities, leading research organisation, and other innovative organisations in an ex-office capacity. Part-time be on a rotational basis.
    • Ex Officio members: Max. of 4 members of the Council of Ministers, nominated by the PM
    • Chief Executive Officer: The PM will appoint the CEO for a fixed tenure. He will be in the rank of Secretary to the GoI.

Planning Commission(Erstwhile Commission)

  1. A Resolution of GoI set up the PC in March 1950.
  2. Objectives:
    1. To promote a rapid rise in the people’s standard of living by efficiently exploiting the country’s resources.
    2. Increasing production and 
    3. Offering opportunities to all for employment in the service of the community. 
  3. The PC was charged with assessing all resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. 
  4. Jawaharlal Nehru was the 1st Chairman of the PC.
  5. Niti Aayog replaced PC with major modification in 2015.

Difference between Niti Aayog and erstwhile Planning Commission

S.no.Niti AayogPlanning Commission(PC)
1Niti Aayog is a think-tank or advisory body, not imposing policies on the state.PC has the power to impose policies on the state.
2State govt plays a significant role.The state govt role was limited to the National Development Council.
3Power of allocation fund not in the hand of Niti Aayog. The power confined to the Finance ministry.Power of allocation fund to the state, ministries, project in the hand of PC.
4The Prime Miniter appoints the CEO(secretaries) of Aayog.Secretaries were appointed through the usual process.
5Aayog is also an Executive Body, not mentioned in the constitution, and an Act of Parliament did not establish it.PC was an Executive Body

Five Year Plan(FYP) of PC(Centre) from 1951 to 2017

1st FYP(1951-1956)
  1. Based on the Harrod-Domar model (https://en.wikipedia.org/wiki/Harrod%E2%80%93Domar_model#:~:text=The%20Harrod%E2%80%93Domar%20model%20is,economy%20to%20have%20balanced%20growth)
  2. The main focus of this plan was on the agriculture development of the country.
  3. This plan was successful and achieved a growth rate of 3.6%.
2nd FYP(1956-1961)
  1. Based on the P.C Mahalanobis Model (https://en.wikipedia.org/wiki/Feldman%E2%80%93Mahalanobis_model#:~:text=The%20Feldman%E2%80%93Mahalanobis%20model%20is,Prasanta%20Chandra%20Mahalanobis%20in%201953.&text=There%20is%20no%20evidence%20that,the%20borders%20of%20the%20USSR)
  2. The main focus was on the industrial development of the country.
  3. This plan was successful and achieved a growth rate of 4.1%
3rd FYP(1961-1966)
  1. This is also known as “Gadgil Yojana“.
  2. Main target
    1. To make the economy independent and
    2. Reach the self-active position of take-off.
  3. The plan does not achieve a targeted growth rate of 5.6% due to the China War(1962).
Plan Holiday(1966-1969)
  1. The main reason behind the “Plan Holiday” is
    1. Indo-Pak war and
    2. Failure of the 3rd plan.
  2. Priority area(in an equal manner):
    1. Agriculture and its allied sectors
    2. Industrial sector
4th FYP(1969-1974)
  1. Main objectives:
    1. Growth with stability and
    2. Progressive achievement of self-reliance.
  2. In this plan, the late PM Indira Gandhi administered the slogan “Garibi Hatao”.
  3. This plan failed and could achieve a growth rate of 3.3% only against the targeted 5.7%.
5th FYP(1974-1979)
  1. Priority area:
    1. Agriculture
    2. Industry and mines.
  2. This plan was successful and achieved a growth of 4.8% against the target of 4.4%.
  3. This draft of this plan prepared and launched by the D.P. Dhar. This plan terminated in 1978.
Rolling Plan
  1. This plan started with an annual plan for 1978-80 and as a continuation of the terminated fifth year plan.
6th FYP(1980-85)
  1. Objective
    1. Poverty eradication and
    2. Technological self-reliance
  2. This plan was based on investment yojana, infrastructural changes and trend to the growth model.
  3. This Plan achieves a growth rate of 5.7% against the target of 5.2%.
7th FYP(1985-90)
  1. Objectives
    1. Establishment of a self-sufficient economy
    2. Opportunities for productive employment.
  2. For the first time, the private sector got priority over the public sector.
  3. This Plan achieved a growth rate of 6.0% against the target of 5.0%.
Annual Plans
  1. With the prevalence of a volatile political situation at the centre, the 8th FYP could not occur.
  2. So, in the year 1990-91 and 1991-92 the two annual programmes formed.
8th FYP(1992-1997)
  1. Priority
    1. Human resources development
      • Employment, education, and public health
  2. The “New Economic Policy” launched during the plan by the Narasimha Rao government.
  3. This plan was successful and got an annual growth rate of 6.8% against 5.6%.
9th FYP(1997-2002)
  1. The theme for this was “Growth with Justice and Equity”.
  2. The plan failed to achieve the growth target of 7% and grow only at the rate of 5.6%.
10th FYP(2002-2007)
  1. This plan aims to double the per capita income of India in the next 10 years.
  2. The aim of a plan to reduce the poverty ratio by 15% by 2012.
  3. This plan achieves a growth rate of 7.2% against a targeted 8.0%.
11th FYP(2007-2012)
  1. The C. Rangarajan prepared it.
  2. The theme of the plan was “Faster and more inclusive growth”.
  3. This plan achieves a growth rate of 7.9% against targeted 8.1%.
12th FYP(2012-2017)
  1. The theme of the plan was “Faster, More Inclusive and Sustainable Growth”. 
  2. Its growth rate target is 8%.

Five Year Plan(Rajasthan) from 1951 to 2017 (http://plan.rajasthan.gov.in/content/dam/planning-portal/planning-dpt/plan/five-year-plan/chapters/year-2012-17/620092013015538.pdf)

1st FYP(1951-56)
  1. Main Focus area:
    1. Agricultural production
    2. Extension of irrigation facilities
    3. Development of power resources and
    4. Enhancement of basic social services
      • Education, medical facilities and drinking water.
  2. The Approved outlay was Rs. 64.50 crores in the 1st 5YP, against which Rs’ expenditure 54.15 crores incurred. 
2nd FYP(1956-61)
  1. Main Focus area:
    1. Agriculture
    2. Irrigation
    3. Power and 
    4. Social services
  2. The Approved outlay was 105.27 crore in the 2nd 5YP, against which an expenditure of Rs. 102.74 core
  3. The highest priority accorded to 
    1. Irrigation & Flood Control (27.12%)
    2. Social & Community Services (24.38%)
    3. Power (14.75%) and 
    4. Rural Development (12.19%). 
  4. Rajasthan became a pioneering state in introducing the 3-tier Panchayati Raj System from 2nd October 1959. 
  5. Land reforms initiated in this plan and steps are taken to abolish Zamindari, Jagirdari and Biswedari systems of land occupancies. 
3rd FYP(1961-66)
  1. Main Focus/priority:
    1. Infrastructural facilities
    2. Irrigation and
    3. Power sector
  2. The development of the Industries and Mines sector also considered in this plan.
  3. An outlay of Rs. 236.00 crore approved against which an expenditure of Rs. 212.70 crore incurred.
  4. The highest priority accorded to
    1. Irrigation & Flood Control (41.32%)
    2. Social & Community Services (20.15%) and 
    3. Power (18.50%). 
  5. The Plan had witnessed an average annual growth rate of 1.86% in Net State Domestic Product (NSDP) at constant (2004-05) prices, but Per-Capita Income decreased by 0.50%. 
  6. The agriculture sector grew at 1.51%, Industry at 3.39% and the Services sector at 2.16%. 
  7. To increase crop production, the Intensive Agricultural District Program and Intensive Agricultural Area Program initiated, but food grains’ production came down due to famines and droughts.
3 Year Annual Plans(1966-69)
  1. The 4th FYP not implemented in 1966 due to the Indo-Pak war of 1965. 
  2. Consecutive 3 years were taken under Annual Plans (1966-69). 
  3. During these 3 Annual Plans (1966-69)
    1. The approved outlay was Rs. 132.60 crore. Against which an expenditure of Rs. 136.76 crore incurred, which was, first time, higher than the approved outlay in the planning era after independence.
  4. The highest expenditure made under 
    1. Power (34.24%) 
    2. Irrigation and Flood Control (34.07%) and
    3. Social & Community Services (15.85%). 
  5. There was a shadow of droughts & famines in 2 years of these three Annual Plans. 
    1. This economy had witnessed a dismal growth of 0.10% at constant (2004-05) prices and negative growth of 2.17% in Per-Capita Income. 
    2. Agriculture & Industry sectors declined with 1.60% & 0.56% growth rates respectively, and services sectors showed improvement with 4.49% growth rate. 
4th FYP(1969-74)
  1. Ambitious programmes launched for 
    1. Drought Prone Areas
    2. Command Area Development and 
    3. Dairy Development
  2. Rs. 308.79 crores spent against an approved outlay of Rs. 306.21 crore. 
  3. The highest priority again accorded to
    1. Irrigation & flood control (34.09%)
    2. Power (30.43%) and 
    3. Social & Community Services (23.34%)
  4. The economy grew at 7.71% at constant (2004-05) prices, and Per-Capita Income rose by 4.34%. 
  5. This plan period had witnessed excellent crops, which reflected by the Agriculture Sector’s 12.35% growth rate.
  6. Industry & Services sectors also grew at 4.58 % and 3.58%, respectively. 
5th FYP(1974-79)
  1. Economic empowerment of weaker sections along with decentralized planning accorded a very high priority. 
  2. Minimum Needs Programme introduced, and emphasis laid on employment generation and Industries & Mines. 
  3. The approved outlay for this plan was Rs. 847.16 crore, against which an expenditure of Rs. 857.62 crore incurred. 
  4. The highest priority is given to
    1. Irrigation & Flood Control (31.62%)
    2. Power (29.03%) and 
    3. Social & Community Services (17.38%)
    4. High priority also accorded to Transport & Industries.
  5. Expenditure on Transport Sector was increased by more than 8 times and on Industries & Minerals by 4 times. 
  6. District Industries Centres (DICs) were set up during this period. Their active participation in the State’s industrial development, khadi products & village industries’ production had increased.
  7. The economy had witnessed 5.34% growth at constant (2004-05) prices, and Per-Capita Income increased by 2.38%.
  8. Agriculture, Industry & Services sector showed growth rates of 4.76%, 5.93% & 6.32% respectively. 
Annual Plan(1979-80)
  1. Due to mid-term elections, the 1st year of the 6th FYP converted into an Annual Plan (1979-80). 
  2. An expenditure of Rs. 290.19 crore incurred against an approved outlay of Rs. 275.00 crore. 
  3. The highest priority shifted to:
    1. Power (34.46%)
    2. Irrigation & Flood Control (26.30%) and 
    3. Social & Community Services (13.69%). 
  4. This annual plan had witnessed negative growth of 14.21% at constant (2004-05) prices, and Per-Capita Income dipped by 16.61%.
  5. Agriculture, Industry & Services Sector showed growth rates of -24.07%, -4.97% & -2.40% respectively.
6th FYP(1980-85)
  1. Main focus area:
    1. Poverty alleviation and 
    2. Employment generation. 
    3. In this series, the National Rural Employment Programme (NREP) and Integrated Rural Development Programme (IRDP) appeared as the vital ingredients of the plan. 
  2. The new Twenty Point Programme introduced to accelerate the pace of development. 
  3. Rs. 2120.45 crores spent against an approved outlay of Rs. 2025.00 crore. 
  4. The highest priority accorded to 
    1. Power (26.70%)
    2. Irrigation & Flood Control (25.80%)
    3. Social & Community Services (19.81%) and 
    4. Transport (11.50%) sectors. 
  5. Expenditure under Rural Development increased by more than 6 times compared to the last plan. 
  6. The maximum period of this plan affected by droughts and famines.
    1. Despite this, the economy witnessed 6.20% growth at constant (2004-05) prices and Per-Capita Income increased by 3.26%. 
  7. Agriculture, Industry & Services Sector showed growth rates of 8.99%, 2.91% & 4.52% respectively. 
7th FYP(1985-90)
  1. Objectives:
    1. Maximization of production in key sectors of the economy specialises in the rural economy, progressive poverty reduction, and unemployment. 
    2. Emphasis is given to reduce the gap in the average incomes of the state and the nation.
    3. To achieve a growth rate of 8% in the State economy compared to 5% of the national level.
    4. To implement the Desert Development Programme due to special geographical and physical conditions of the State and the 20 Point Programme and Minimum Needs Programme.
  2. An expenditure of Rs. 3106.18 crore made against an approved outlay of Rs. 3000.00 crore. 
  3. Highest Priority again accorded to 
    1. Power (29.68%)
    2. Social & Community Services (23.70%) and 
    3. Irrigation & Flood Control (22.23%).
  4. Despite all 5 years of this plan’s droughts and famines, the economy witnessed an annual growth of 8.29% at constant (2004-05) prices, and Per-Capita Income increased by 5.69%. 
  5. Agriculture, Industry & Services Sector showed growth rates of 9.74%, 7.84% & 11.36% respectively.
Annual Plans(1990-92)
  1. The 8th FYP not be started due to international shocks on the national economy for two years.
  2. These two years (1990-91 and 1991-92) converted into Annual Plans. 
  3. Rs. 2159.98 crores spent against an approved outlay of Rs. 2126.00 crore during Annual Plans (1990-92). 
  4. The highest priority accorded to 
    1. Power (28.81%)
    2. Social & Community Services (23.18%) and 
    3. Irrigation & Flood Control (18.32%).
  5. An excellent economic growth rate of 11.16% at constant (2004-05) prices noticed during this period, and Per-Capita Income rose by 8.79%.
  6. The industry sector showed a remarkable growth of 21.72%. Agriculture and Services sectors grew at 8.07% & 10.45% respectively. 
8th FYP(1992-997)
  1. Aimed:
    1. Faster growth
    2. Generation of more employment opportunities
    3. Reduction in poverty and regional disparities
    4. Provision of basic minimum facilities and enhancement in people’s participation
    5. Reduction in population growth rate
    6. Completion of ongoing projects within stipulated time and
    7. Diversification of agriculture to horticulture, livestock, fisheries, and agro-processing, etc. 
  2. An expenditure of Rs. 11998.97 crore incurred against an approved outlay of Rs. 11500.00 crore. 
  3. The highest priority is given to 
    1. Power (27.12%)
    2. Social and Community Services (25.80%) and 
    3. Irrigation and Flood Control (15.30%). 
  4. Rural Development and Agriculture were also priority areas with a 16.53% share in expenditure. 
  5. The economy’s growth rate was 8.08% at constant (2004-05) prices, and Per-Capita Income grew by 5.44%.
  6. Agriculture, Industry & Services Sector showed growth rates of 9.04%, 8.32% & 7.76% respectively. 
9th FYP(1997-2002)
  1. Priority:
    1. Generation of larger employment opportunities
    2. Reduction in poverty and regional disparities
    3. Provision of basic minimum service
    4. People’s participation and infrastructure development
    5. Accelerate the pace of development for improving the people’s living conditions and reach the national averages in sectors in which the State was below the national average were also priority areas. 
  2. An expenditure of Rs. 19566.82 crore made against an approved outlay of Rs. 27650.00 crore. 
  3. The highest priority is given to 
    1. Social & Community Services (32.70%)
    2. Power (26.87%)
    3. Irrigation & Flood Control (11.55%)
    4. Rural Development & Agriculture (13.99%)
  4. The economy’s growth rate was 4.59% at constant (2004-05) prices, and Per-Capita Income grew by 1.95%. 
  5. Agriculture, Industry & Services Sector showed growth rates of 2.05%, 7.72% & 6.13% respectively. 
10th FYP(2002-07)
  1. The 10th FYP of the nation recognized that the development objectives need to be defined not only in terms of increase in GDP but also in terms of human well being. 
  2. The State’s approach and strategy for the 10th FYP aimed at achieving the national average levels in respect of all the critical indicators of quality of life. 
  3. Priority:
    1. Generation of employment opportunities
    2. Substantial reductions in poverty and regional disparities
    3. Provision for basic minimum services
    4. Ensuring greater people participation
    5. Focus on infrastructure development
  4. Considering the estimated resources, the Planning Commission approved the Tenth Plan outlay for Rajasthan for Rs. 31831.75 crores. Against this, an expenditure of Rs. 33951.21 crore incurred.
  5.  The highest priority was given to
    1. Power (31.51%)
    2. Social & Community Services (29.94%)
    3. Irrigation & Flood Control (11.10%)
  6. The economy’s growth rate was 7.17% at constant (2004-05) prices, and PerCapita Income grew by 5.19%.
  7. Agriculture, Industry & Services Sector showed growth rates of 6.25%, 13.74% & 7.13% respectively. 
  8. Rajasthan Fiscal Responsibility and Budget Management(FRBM) Act enacted in the year 2005-06. 
    1. The State Government achieved the targets laid down in the FRBM Act and achieved additional improvements in the revenue deficit and fiscal deficit. 
    2. The Public Expenditure Review Committee constituted under the FRBM Act provision to give revenue augmentation and expenditure control recommendations after carrying out a detailed review of the existing system. 
11th FYP(2007-12)
  1. The National 11th Plan approach was “Towards Faster and More Inclusive Growth”. It was a growth target, and the number of quantifiable and monitorable Socio-Economic targets relating to employment generation, school drop-out rates, infants’ mortality, maternal mortality etc., were specified. 
  2. Priority area(Rajasthan): 
    1. Eliminating hunger, malnutrition, starvation below subsistence level of living and abject poverty
    2. Disadvantaged women.
    3. Emphasizing HRD, social infrastructure, creating capabilities, filling up social infra gaps.
    4. Providing gainful employment, creation of livelihoods and conservation of natural and cultural heritage.
    5. Ensuring good governance & fiscal reforms.
    6. Creation of economic infrastructure.
  3. The estimated growth rate of 6.5% in this Plan.
  4. The big achievement in this Plan is that in the year 2010-11, the growth rate achieves the highest of 11.2%.
12th FYP(20012-17)
  1. The theme of the 12th FYP was “Faster, Sustainable and More Inclusive Growth”.
  2. An outlay of Rs. 1,96,992 proposed for the 12th FYP.
  3. Economic growth rate:

Planning Department(Rajasthan)(http://plan.rajasthan.gov.in/planning#)

  1. Planning Department prepares Schematic Budget, Monitors Expenditure, Budget Announcement & Centrally Sponsored Schemes for achieving targeted growth in State. 
  2. The department oversees the government policy’s implementation of development into a proper implementation framework and ensures its execution. 
  3. Promoting PPP(Public-Private Partnership) initiatives in infrastructure and social sectors and streamlining and modernizing statistical systems for ensuring reliable, timely and credible data. 
  4. The department acts as a bridge between State and Central Ministries like MoSPI, Cabinet Secretariat & Institutions like NITI Aayog. 
  5. Department is the cadre controlling department of Economics & Statistical Services and Evaluation Service.
  6. The department plays Coordinating roles for the preparation of the Perspective Plan/ Vision Document & Roadmaps. 
  7. The Project Monitoring Unit of the department coordinates with the state departments, Ministry of Finance & other Agencies for Externally Aided Projects.
  8. Department performs as a bridge between the State Government and Banks.