NITI Ayog
The National Institution for Transforming India
is a policy body serving as ‘think tank’ tasked with a role of
formulating policies and directions for the government. It replaced
Planning Commission which had been preparing five year plans for India
for last 60 years.
According to the resolution of the
cabinet to set up NITI Ayog, the body is responsible to recommend a
national agenda including strategic and technical advice on elements of
policy and economic matters. It also develops mechanisms for village
level plans and aggregates these progressively at higher levels of
government.
While the NITI Ayog has been set up with
an aim to foster and enhance the centre-state cooperation, the
opposition parties criticised saying that the replacement of Planning
Commission can be best viewed as a ‘cosmetic change’.
The change
The main role of Planning Commission was
to decide inter-ministerial allocation. If a government allocates Rs. 5
lakh crores as planned fund, how to decide how much for industry, for
education, for health etc. was being done by finance ministry in other
countries. In India, this role has traditionally been done by Planning
Commission. Now this role has been deleted and they are no longer
deciding the allocation. It is now directly decided by the finance
ministry just as done in state governments and other countries.
Planning Commission was not doing well because:
- Generally members of Planning Commission were defeated politicians and rarely had interest in academic knowledge or finding out why things are not working well.
- Most of officers posted in Planning Commission were due to its becoming a dumping ground for unwanted officers.
Earlier, the Planning Commission had
been restricted with assimilating the demands of various ministries,
state governments and allocating the resources. This was needing a
change and hence from NITI Ayog, the role of assimilating and allocation
of resources to the state has now been taken over by 14th FC.
Two years of NITI Ayog
NITI Ayog is still in infancy and trying
to find out its role and how things should be done. The role of think
tank is not an easy one. The members have to be aware of all the
constraints, be in touch with professional organisations and give
suggestions to state governments and central government. This role has
still not been performed by NITI Ayog and thus they need some more time
to carve out their responsibilities.
Any ‘Think tank’ has to be slightly
distant from government. It has been however observed that members,
vice-chairman of NITI Ayog have been defending government on all issues.
That is the role of ministry of information, visual publicity or PMO.
If this role is being performed by a ‘Think tank’ then there is a
conflict between justifying government and giving advice to government
on right kind of issues. Thus, it is not apt by NITI Ayog to justify the
government on all issues, especially controversial issues.
Though it is true that it may not have
accomplished the full work for which the transformation of NITI Ayog was
done. But it is moving towards the same as its full term is not yet
over.
Areas where NITI Ayog intervened
Land acquisition was a complicated issue
where NITI Ayog set up its task force and explored area such as
digitisation, land leasing. It has formulated a model land-leasing law,
which Madhya Pradesh has adopted and Uttar Pradesh has substantially
incorporated into a pre-existing law. Several other states are actively
considering adopting the model law.
The Aayog has taken the initiative to
identify numerous sick Public Sector units for closure. Action on 17
such units is under way. The Aayog has also identified several
functioning units for strategic disinvestment.
It has also proposed replacement of the
Indian Medical Council Act, 1956, by a Medical Education Commission Act
to overhaul medical education in India.
The Aayog is also leading a campaign to bring about major reforms in agricultural marketing.
However, in the biggest policy decision
impacting economic, political and social life had no role of NITI Ayog
in terms of providing either the conceptual inputs or in implementation.
They belatedly took up the idea of popularising digital payment system
and innovating some lottery schemes.
Time needed
Two years is a short period of time for
any institution to evolve. Even the Planning Commission evolved for over
60 years and ultimately rendered itself useless. Thus, in institutional
life, two years is very less.
Truly independent?
The new ‘think tank’ has been called as
National Institute for Transforming India thereby giving it a big name.
But the work has not been concretized as yet. From the beginning, the
terms of conceptualising this institute has been flawed. There was a
body that was required to replace Planning Commission and hence
something was set up without much thinking. The job of Planning
Commission of allocation of resources for planned schemes among the
states had been taken over by finance ministry. After that, NITI Ayog
was conceived as a think tank. Now NITI Ayog is called a part of
government where except for few external consultants, it functions
within the same bureaucratic set up as the government. Hence, to think
that it will come out with out of the box ideas will be very difficult
or sending false signals.
Also, NITI Ayog has become a toothless
organisation which has no power to implement or voice its decisions. The
states also don’t turn up for meeting which they did during Planning
Commission, which had allocating functions.
Role of Planning Commission vis-a-vis states
Planning Commission had no big role in
funding the states, but rather had a very big role in deciding the funds
for ministries of GoI. The states got funding from 3 sources: 50% from
Finance Commission, 45% central ministries as CSS and only 5% from the
Planning Commission. So Planning Commission’s role vis-a-vis states had
been diluted in 1991 after liberalisation. The Planning Commission no
longer decided what state schemes should run and that function was given
to respective ministries. These ministries are still running programmes
such as SSA, PMGSY, NREGA.
Analytical role
Job creation is a major concern.
Unemployment leads to faltering of economy as well. The government had
promised 100 million jobs by 2019. It is very well established that
during 2004-14, it was a period of jobless growth. Hardly any jobs were
created in that period.
In last two years, the government has
given lot of importance to it. But what has happened in last two years
should be studied by NITI Ayog. Until two years, NITI Ayog has not
fared expectedly in this process. The industry expects from NITI Ayog to
create avenues of jobs through its findings and analysis. For example,
the MSME sector can create jobs but how and how much is not
categorically known.
Unfortunately, World Bank came out with a
study recently showing that progress is dismal. Programmes like
Ajeevika have not rendered any new jobs and hence a failed programme.
Government very rightly asked NITI Ayog
to monitor sustainable development goals. For one year and half, they
have not produced a sigle report as to why MDGs were not achieved by
India in respect to gender, health, hunger, education, sanitation. They
should analyse it and make a report else all these flaws will remain and
sustainable development goals will also not be achieved.
Way forward
Any criticism which leads to improvement
or desired transformation is welcome. More studies need to be done by
NITI Ayog to establish itself as a critical institution in fora of
planning. Also, there should be some accountability, more information
given to public and road map of future course of action given by NITI
Ayog.
There is a need for an institution to
serve the concept of cooperative federalism. The highest decision making
on development and planning which used to be NDC, NITI Ayog should
serve a similar Team India concept.
It would be useful if NITI ayog could
make evaluation of government policies and programmes given that it is
not able to come up with out of the box ideas by itself. It can give
tips which could help to deliver those programmes on ground- Make in
India etc.
NITI Ayog is disintegrating its planning
into three areas. 15 years long term vision document. 7 years
implementation plan and 3 years short term action plan. It is expected
to come out with the action plan shortly which will expectedly take into
account the impact of demonetisation on the economy, especially on
informal sector.
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