UPSC Prelims 2002 Q75: Indian Economy – Economic Planning & Five - Year Plans
A Five Year Plan in India is finally approved by the
- (a) Union Cabinet
- (b) President on the advice of the Prime Minister
- (c) Planning Commission
- (d) National Development Council
Answer: (d) National Development Council
Explanation
Final approval of a Five Year Plan in India
| Body | Role in the Plan |
|---|---|
| National Development Council | Gives the final approval to the Plan |
| Planning Commission | Prepares the draft Plan |
| Union Cabinet | Approves the draft before it goes to the NDC |
| President | Has no direct role in approving the Plan |
The Planning Commission prepares the Plan, the Union Cabinet approves the draft, and the National Development Council gives the final approval. The Plan is then presented to Parliament.
Answer: (d) National Development Council.
Why each option is right or wrong
- (a) Incorrect. The Cabinet approves the draft but not finally.
- (b) Incorrect. The President has no direct role in approving the Plan.
- (c) Incorrect. The Planning Commission only prepares the draft.
- (d) CORRECT. The NDC finally approves the Plan.
Key point
Planning Commission (1950, executive resolution) and NDC (1952) were extra-constitutional bodies; both replaced by NITI Aayog in 2015.
Remember
NDC gives final approval to the Five Year Plan.
Common mistakes
- Choosing the Planning Commission because it drafts the Plan.
- Naming the Cabinet as the final authority.
- Assuming Parliament approves the Plan by law.
Exam tip
Sequence: Planning Commission, then Cabinet, then NDC, then Parliament.
Sources
- Ramesh Singh — Indian Economy
- M. Laxmikanth — Indian Polity