PLANNING COMMISSION

Once the National Planning Committee published its Report (1949), there was a firm inclusion of the need for ‘Economic and Social Planning’40 in the Constitution, the stage was set for the formal launching of planning in the

country. Though the economy was run on the principles of planning very much after the Independence itself41 it was in a piecemeal manner only. For formal planning to begin, for the whole economy at the national level, there was a need for a permanent expert body which could take over the responsibility of the whole gamut of planning, i.e., plan formation, resource aspects, implementation and review—as planning is a technical42 matter. Thus, in March 195043 the Planning Commission (PC) was set up by the government by a Cabinet Resolution (without resorting to legislation). Important details regarding the composition, legal status, etc., of the PC were as under:‌‌

(i) An extra-constitutional (i.e., non-constitutional) and non-statutory body (though planning originates from the Constitution there is no reference to the PC in it).

(ii) An advisory body to the Government of India on an array of issues of economic development.

(iii) A ‘think tank’ on economic development with the Prime Minister as its ex-officio Chairman and with the provision or a Deputy Chairman.44 The main function of the Deputy Chairman was to co-ordinate the work of the Commission.45‌

(iv) Had an open provision for the number of its membership (as many area experts are required by the particular proposed period of planning) other than six Union Cabinet Ministers as its ex-officio members46 and a Member Secretary. The Minister of Planning is already an ex-officio member of the PC.47‌

(v) An autonomous body entitled to form its own views on important issues and place them before the governments. It worked closely with the Union and State cabinets and had full knowledge of their policies.

(vi) Was invariably consulted on changes proposed in social and economic policies. To ensure free and full exchange of ideas, the PC had established a convention that it will not give publicity to differences of views between the Commission and the Union and State governments.

(vii) Linked with the Union Cabinet at the secretariat level. The PC was part

of the Cabinet organisation and the ‘demand for grants’ for it was included in the budget demand for the Cabinet Secretariat.

(viii) Seated at the ‘Yojana Bhavan’, the Commission had a staff of secretaries and advisers and also a research organisation.48

(ix) The PC was a technical body with experts and professionals coming from an array of specific areas as per the need of planning of the concerned period (see footmote 42).

(x) The Commission had executive powers.49

Functions of the PC

Though the PC was set up with a definite purpose of planning, nobody knew that it would extend its functions over the entire spectrum of administration in the country. It was described as the ‘economic Cabinet of the country as a whole’ even encroaching upon the constitutional body like the Finance Commission50 and not being accountable to the Parliament.51 Through time it built up a heavy bureaucratic organisation52 which led even Nehru himself to observe—“The Commission which was a small body of serious thinkers has turned into a government department complete with a crowd of secretaries, directors and of course a big building.”53‌‌‌

Though the functions of the PC were extended to include timely changes in the planning needs (in the reforms era), its functions were announced by the same government order which did set up the Planning Commission. The order54 says: