Concern with NITI Aayog

Source: The post concern with NITI Aayog has been created, based on the article “Planning better: The NITI Aayog suffers from both structural and functional issues” published in “The Hindu” on 29th July 2024

UPSC Syllabus Topic: GS Paper 2- Polity-issues and challenges pertaining to the federal structure,

Context: The article discusses the criticism of NITI Aayog, a think tank led by India’s Prime Minister, due to its limited advisory role and lack of resource distribution powers. It highlights concerns of state leaders about perceived favoritism and calls for restoring some Planning Commission responsibilities.

For detailed information on Reforming the NITI Aayog read this article here

What is the Concern with NITI Aayog?

1. Advisory Role: NITI Aayog is limited to an advisory role without the power to distribute resources, leading to dissatisfaction among state leaders.
2. Boycott by States: Chief Ministers from Tamil Nadu, Kerala, Karnataka, Telangana, Punjab, Himachal Pradesh, and Jharkhand boycotted a meeting due to perceived unfair allocations in the Union Budget.
3. Walkout Incident: West Bengal Chief Minister Mamata Banerjee walked out, highlighting the frustration with the think tank’s limited role.
4. Comparison with Planning Commission: Unlike the Planning Commission, NITI Aayog does not consult states on financial matters, reducing states’ influence on fund allocation.
5. Political Favoritism: Allegations that BJP-ruled states receive more investment projects, exemplified by Bihar and Andhra Pradesh’s support for the NDA government.

What Should be Done?

1. Enhance NITI Aayog’s Role: Re-envision NITI Aayog to include responsibilities for resource allocation, similar to the Planning Commission, to address state concerns about unfair treatment.
2. Promote Cooperative Federalism: Restore some of the Planning Commission’s consultation roles to involve states more in financial decisions, fostering cooperative federalism.
3. Avoid Political Bias: Ensure that investment projects and budget allocations are not biased towards BJP-ruled states, addressing complaints from opposition-ruled states.

Question for practice:

Examine the main concerns raised by state leaders regarding NITI Aayog and the suggested reforms to address these issues.