UPSC Prelims 2014 Q57: Indian Economy – Economic Planning & Five - Year Plans
Which of the following are associated with ‘Planning’ in India?
1. The Finance Commission
2. The National Development Council
3. The Union Ministry of Rural Development
4. The Union Ministry of Urban Development
5. The Parliament
Select the correct answer
using the code given below.
- (a) 1, 2 and 5 only
- (b) 1, 3 and 4 only
- (c) 2 and 5 only
- (d) 1, 2, 3, 4 and 5
Answer: (c) 2 and 5 only
Explanation
Bodies associated with 'Planning' in India
| Body | Associated with planning? | Reason |
|---|---|---|
| 1. Finance Commission | No | Recommends sharing of taxes between the Centre and States (Article 280) |
| 2. National Development Council | Yes | Approved the Five-Year Plans; set up in 1952 |
| 3. Union Ministry of Rural Development | No | Implements schemes; not a planning body |
| 4. Union Ministry of Urban Development | No | Implements schemes; not a planning body |
| 5. Parliament | Yes | Plans were placed before and discussed in Parliament |
How a Five-Year Plan was made:
| Step | Body |
|---|---|
| Drafted by | Planning Commission |
| Approved by | Union Cabinet, then the National Development Council |
| Presented to | Parliament |
The bank earlier stored (b) as the key; the official key is (c).
Answer: (c) 2 and 5 only.
Why each option is right or wrong
- (a) Incorrect. The Finance Commission deals with tax devolution, not planning.
- (b) Incorrect. The Finance Commission and the two Ministries are not planning bodies.
- (c) CORRECT. The National Development Council and Parliament are associated with planning.
- (d) Incorrect. The Finance Commission and the two Ministries do not belong here.
Key point
Planning in India: Planning Commission drafted, National Development Council (1952) approved, Parliament discussed. Finance Commission handles tax sharing.
Remember
Planning bodies: NDC and Parliament.
Common mistakes
- Confusing the Finance Commission with the Planning Commission.
- Treating implementing Ministries as planning bodies.
- Forgetting the role of the National Development Council.
Exam tip
Planning = who makes and approves the Plan. Ministries only carry it out.
Sources
- Planning Commission — Functions of the National Development Council
- M. Laxmikanth — Indian Polity, chapters on Planning Commission and National Development Council