ü  The Planning Commission formulates the five year plans in India.

ü  The Planning Commission plans for the social and economic development in India.

ü  The Planning Commission was set up on the recommendation of Planning Advisory board in the year 1946.

ü  The Chairman of the Planning Advisory Board was K C Neogi.

ü  The Planning Commission was set up in March 1950.

ü  The Planning Commission was established through the executive resolution.

ü  EXECUTIVE RESOLUTION: The decision taken by the Cabinet.

ü  The Planning Commission is not a Constitutional body. It means it is not mentioned in the Constitution.

ü  The Planning Commission is also not a statutory body. It means it is not created by an act of Parliament.


ü  The Prime Minister is the ex-officio chairman of the planning Commission.

·         Ex-officio means whoever is the Prime Minister he acts as the Chairman of Planning Commission.

·         Jawaharlal Nehru was the first Chairman of Planning Commission.

·         The current Prime Minister is the current Chairman of the Planning Commission.

ü  The Planning Commission has a deputy chairman.

ü  The deputy chairman is considered to be the defacto head.

ü  The deputy chairman is appointed by the Cabinet.

ü  The status of the deputy chairman is equal to that of a cabinet minister.

ü  The Union Finance Minister and the Planning Ministers are the ex-officio members of the Planning Commission.

ü  There are four to seven full time expert members. Their status is equal to the status of Minister of State.

ü  There is a member-secretary to the Planning Commission. (Normally a senior member of IAS).

ü  NOTE: In the Planning Commission there is no representation of states.



·         The Planning Commission is an advisory body.

·         The Planning Commission has no executive responsibilities.

·         The Central and State Governments takes the final decisions.

·         The plans are implemented by the Central and state governments.

ü  The Planning Commission makes an assessment of material, capital and human resources of the country and investigates the possibilities of augmenting them.

ü  The Commission formulates a plan for the most effective and balanced utilization of the country’s resources.

ü  The Planning Commission determines the priorities and define the strategies in which the plan should be a carried out.

ü  The Planning Commission indicates the factors that retard the economic development.

ü  NOTE: What is the difference between economic growth and economic development?

ü  The Planning Commission appraises from time to time, the progress achieved in execution of the plan and to recommend necessary adjustments.

ü  The Planning Commission makes appropriate recommendations for facilitating the discharge of its duties or on a matter referred to it for advice by Central or State governments.


ü  This is created in the year 1952.

ü  This acts as a link between the Planning Commission and the states in the field of planning.


ü  The initial idea of establishing the Planning Commission is to act as an advisory body.

ü  Over a period of time the Planning Commission became a directive body, because of this reason the Planning Commission is criticized as

·         Super Cabinet

·         Economic Cabinet

·         Parallel Cabinet

·         Fifth Wheel of the coach

ü  The ARC (Administrative Reforms commission) of India (1966-70) criticized the Planning Commission as a Parallel Cabinet and a Super Cabinet.

ü  The ARC recommended that the Prime Minister should not be the Chairman of the Planning Commission.