Question

Which of the following are key objectives of NITI Aayog?

1. Formulate policies and strategies to enhance the economic development of the country.
2. Directly oversee the allocation of funds for state-level development projects.
3. Promote cooperative federalism through partnership between the centre and states
4. Evaluate and replace state governments based on their economic performance.

• A. All
• B. 1 only
• C. 3, 4
• D. 1, 3

Answer 1

Answer:

D. 1, 3

Understanding NITI Aayog's Core Objectives

• Genesis of NITI Aayog: NITI Aayog (National Institution for Transforming India) was established on January 1, 2015, replacing the erstwhile Planning Commission. This change marked a shift from a command-and-control economy to a more collaborative and consultative approach.
• Key Objective 1: Policy Formulation and Strategy (Option 1): One of the primary functions of NITI Aayog is to act as a 'think-tank' of the Government of India. It formulates long-term policies and programmes, provides strategic and technical advice to the Centre and States, and monitors their implementation to enhance the country's economic development and growth.
• Key Objective 2: Promoting Cooperative Federalism (Option 3): NITI Aayog is designed to foster greater involvement of State Governments in the economic policy-making process. It promotes cooperative federalism by ensuring structured support mechanisms and initiatives for collaboration between the Centre and States on various policy matters, moving away from the 'top-down' approach of the Planning Commission.
• Distinction from Planning Commission – No Fund Allocation (Incorrect Option 2): Unlike the Planning Commission, NITI Aayog does not have the power to allocate funds to states or ministries. Its role is purely advisory. The financial allocation powers primarily rest with the Ministry of Finance and the Finance Commission.
• No Power to Replace State Governments (Incorrect Option 4): NITI Aayog is an advisory body and has no constitutional or legal authority to evaluate and replace state governments based on their economic performance. Such actions are outside its mandate and fundamental to India's democratic structure.

Important Facts for Competitive Exams:

• Full Form: NITI Aayog stands for National Institution for Transforming India.
• Chairman: The Prime Minister of India serves as the ex-officio Chairman of NITI Aayog.
• Vice-Chairman: Appointed by the Prime Minister, the Vice-Chairman holds a cabinet minister rank. The first Vice-Chairman was Arvind Panagariya.
• CEO: The Chief Executive Officer (CEO) is appointed by the Prime Minister for a fixed tenure, holding the rank of Secretary to the Government of India.
• Governing Council: Comprises the Chief Ministers of all States and Union Territories with Legislatures, and Lt. Governors of other Union Territories. This body reflects its commitment to cooperative federalism.
• Two Hubs: NITI Aayog has two main hubs: the Team India Hub (to facilitate inter-state interaction) and the Knowledge and Innovation Hub (to build a repository of knowledge and expertise).
• Bottom-Up Approach: NITI Aayog emphasizes a 'bottom-up' approach to development, empowering states to play a more active role in national development strategies.