- Planning Commission is an extra constitutional and non-statutory body. In simple terms it is neither mentioned in constitution (extra constitutional) nor came into being by an Act of Parliament (non statutory). It was formed on the recommendation of Planning Board headed by K. C Neogi in 1951 by the executive order.
- Its function is to prepare a plan for most effective and balanced utilisation of the country's resources.
Organisation
- Prime Minister is the ex-officio Chairman of Planning Commission.
- Deputy Chairman is nominated by Prime Minister. He has given the rank of a full Cabinet Minister.
- The Planning Commission have advisory role.
- The N.D.C. was set up for the first time in 1951 with a view to bringing about a coordination of plans between the Central Ministers and the State Governments.
- It is the apex body below Parliament for decision making and deliberations on development matters in India.
- The Council comprises the Prime Minister, the Union Cabinet Ministers, Chief Ministers of all States, representatives of the union territories and the members of the Commissions.
- The Secretary of the Planning Commission also acts as the Secretary to the NDC.
- It is an extra-constitutional and non-statutory body.
- Its status is advisory to planning commission but not binding.
The functions of the Council are
1. to prescribe guidelines for the formulation of the National Plan, including the assessment of resources for the Plan;
2. to consider the National Plan as formulated by the Planning Commission;
3. to consider important questions of social and economic policy affecting national development; and
4. to review the working of the Plan from time to time and to recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.
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