UPSC Prelims 2004 Q52: Indian Economy – Economic Planning & Five - Year Plans
Consider the following statements:
1. The highest deciding body for planning in India is the Planning Commission of India.
2. The Secretary of the Planning Commission of India is also the Secretary of the National
Development Council.
3. The Constitution includes economic and social planning in the Concurrent List in the Seventh
Schedule of the Constitution of India.
Which of the statements given above is/are correct?
- (a) 1 and 2
- (b) 2 and 3
- (c) 2 only
- (d) 3 only
Answer: (b) 2 and 3
Explanation
Planning Commission and National Development Council
| Statement | Verdict |
|---|---|
| 1. Highest deciding body for planning is the Planning Commission | False: the National Development Council is the highest body, approving the Plan |
| 2. Secretary of the Planning Commission is also Secretary of the NDC | True |
| 3. Economic and social planning is in the Concurrent List | True — Entry 20, Seventh Schedule |
Statements 2 and 3 are correct. The NDC, headed by the Prime Minister, gives final approval to the Five Year Plan.
Answer: (b) 2 and 3.
Why each option is right or wrong
- (a) Incorrect. Statement 1 names the wrong body.
- (b) CORRECT. Statements 2 and 3 are correct.
- (c) Incorrect. Statement 3 is also correct.
- (d) Incorrect. Statement 2 is also correct.
Key point
Planning Commission: proposes; NDC: approves; Parliament: ratifies.
Remember
The National Development Council is the highest body for approving plans.
Common mistakes
- Treating the Planning Commission as the final authority.
- Forgetting that planning is in the Concurrent List.
- Confusing the NDC with the Finance Commission.
Exam tip
Concurrent List entry 20: economic and social planning.
Sources
- Planning Commission, Government of India — Resolution of 15 March 1950 constituting the Planning Commission
- Planning Commission, Government of India — National Development Council: composition and functions