Difference Between NITI Aayog and Planning Commission | NITI Aayog vs Planning Commission

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The difference between NITI Aayog and Planning Commission is that the former is a new body established on 1st January 2015 by the central government as a replacement for the Planning Commission. The NITI Aayog and the Planning Commission are programs launched by the Government of India. National Institution for Transforming India, abbreviated as NITI Aayog, was initiated by the government in 2015. The Planning Commission has been in place since 1950 but was discarded on 17th August 2014.

Difference Between Niti Aayog and Planning Commission PDF

The NITI Aayog is an executive commission currently headed by the Prime Minister and assisted by a Deputy Chairman. The erstwhile Planning Commission was responsible for generating all the country’s development plans. The Chief Ministers of the states are members of the Commission guided by technical experts. In this article, the Difference Between NITI Aayog and Planning Commission is explained in detail, along with their functions, objectives, year of establishment, etc.

Difference Between NITI Aayog and Planning Commission

Before NITI Aayog, the Planning Commission was responsible for the development plans for all the states within the country. Each state would have its State planning board, and it would be responsible for generating annual plans for five years, which were later merged into a draft for the overall five-year plans. The difference between Planning Commission and NITI Aayog is tabulated below.

NITI Aayog vs Planning Commission

Difference Between NITI Aayog and Planning Commission

NITI Aayog

Planning Commission

Currently, the NITI Aayog has no power to impose a policy decision on the state and acts only as an advisory body.

Previously, the Planning Commission did have the power to impose a policy on a state and the projects approved by it.

Fewer working members as compared to the Planning Commission.

Before its cessation in 2014, the Commission ran with eight working members.

The Prime Minister will appoint the CEO, and all such members are secretaries.

A proper selection and appointment process was followed to fill the members.

The NITI Aayog does not have any powers to allocate any funds.

The power lies with the finance ministry of the government.

The Planning Commission had the power to allocate funds to the government to implement several programs at the state and national levels.

The NITI Aayog enjoys partnerships with several states at present.

This helps to maintain cooperation between the body and the states to implement its programs.

This also provides a structure for interaction and communication between the states.

The Planning Commission had a structure similar to a federal institution but had no representation from the state government.

This limited the interaction between the commission and the state governments.

Part-time members can be appointed to the NITI Aayog based on the requirements.

No provision to appoint part-time members.

Members: CEO, Vice-Chairperson, 4 Cabinet members.

This body has 2 part-time members and 5 full-time members.

The Commission used to have only full-time members, a member secretary, and a Deputy Chairperson.

Planning Commission and NITI Aayog

State Governments play a more assertive role in NITI Aayog; on the other hand, in Planning Commission, the State Governments did not play a major role other than taking part in the meetings. The Planning Commission had the authority to distribute budgets to the State Governments, unlike NITI Aayog.

NITI Aayog and Planning Commission runs on the development objective and stands as a non-responsible body to the parliament. Both are long-term boards that meet yearly to discuss various plans and objectives.

What is Planning Commission?

The Planning Commission of India is no longer active as the NITI Aayog replaced it in 2015. It was formulated on 15th March 1950, right after the enactment of the constitution of India. The Planning Commission used to form five-year plans at the national level and had the power to impose policies in states (which is not the case with the NITI Aayog).

Some significant functions of the Planning Commission are as follows:

  • Effective planning was done to utilize the country’s resources efficiently.
  • Evaluate the human and material resources, including technical personnel, and look for the possibilities of enhancing these resources for the betterment of the nation.
  • Prepare a plan including the stages of implementation and allocation of resources for each stage.

What is NITI Aayog?

The NITI Aayog is the policy think tank for the Government of India, established on 01 January 2015 by the Central Government of India under the leadership of Prime Minister Narendra Modi.

  • Some of the initiatives it took include a “15-year Road map” and a “7- year vision, strategy, and action plan”.
  • It works as an advisory body and has no power to impose policies on states.


Key Difference Between NITI Aayog and Planning Commission

The key Difference Between NITI Aayog and Planning Commission is that Planning Commission was re-established under the name of NITI Aayog in the year 2015, after observing its ineffectiveness over the years, it was decided to make some changes to the functions of this body.

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