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Question

The Chairperson of Planning Commission in India is:

The correct answer is
b Prime Minister of India

Understanding the Planning Commission of India

The question asks about the Chairperson of the Planning Commission in India. The Planning Commission was an institution in the Government of India, which formulated India's Five-Year Plans, among other functions. It played a central role in planning the country's development after independence.

Role of the Chairperson of the Planning Commission

The Chairperson was the chief executive of the Planning Commission. This position was always held by the serving Prime Minister of India. The Prime Minister, being the head of government, provided overall direction and guidance to the work of the Commission.

Analysing the Options

  • President of India: The President is the head of state, but not the chairperson of the Planning Commission.
  • Prime Minister of India: The Prime Minister is the head of government and traditionally held the position of Chairperson of the Planning Commission. This option aligns with the historical structure of the Planning Commission.
  • Chief Minister of India: There is no position called 'Chief Minister of India'. Chief Ministers head state governments.
  • Education Minister: The Education Minister is responsible for the education portfolio, not the overall planning for the entire nation's economy and development undertaken by the Planning Commission.

Based on the structure and history of the Planning Commission, the person who chaired it was the Prime Minister of India.

Key Functions of the Planning Commission (when it existed)

  • Assessing the resources of the country.
  • Formulating Five-Year Plans for the balanced utilization of resources.
  • Defining stages for Plan implementation and proposing the allocation of resources.
  • Identifying factors that tend to retard economic development.
  • Making recommendations on necessary policy and administrative changes.

Therefore, the correct answer is the Prime Minister of India, who served as the Chairperson of the Planning Commission.

Chairperson of Planning Commission
Body Chairperson
Planning Commission (defunct) Prime Minister of India
NITI Aayog (current) Prime Minister of India

Revision Table: Planning Commission Basics

Aspect Details
Establishment 15 March 1950
Type Advisory body
Chairperson Prime Minister of India
Purpose Formulate Five-Year Plans, advise on resource allocation
Replacement Replaced by NITI Aayog on 1 January 2015

Additional Information: Planning Commission & NITI Aayog

The Planning Commission was a key institution responsible for centralized planning in India. It was established based on the principle of socialist planning adopted by the government post-independence. The Prime Minister always held the top leadership role as the Chairperson, signifying the importance of national planning under the highest political authority.

However, over time, questions were raised about the effectiveness and relevance of the Planning Commission in a changing economic landscape. In 2015, the Government of India replaced the Planning Commission with the National Institution for Transforming India (NITI Aayog). Like the Planning Commission, the Prime Minister of India serves as the Chairperson of NITI Aayog as well. NITI Aayog is designed as a think-tank and policy-making body, focusing on a more bottom-up approach to planning and development.

While the institution itself has changed from the Planning Commission to NITI Aayog, the role of the Prime Minister as the chairperson of the primary national planning/policy body remains constant.

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Important Questions from Economics and Central Problems of Economy

  1. If the value of Investment Multiplier is 5 and the increased income is ₹ 800 crore in an economy, then find the value of change in the investment in the economy.

  2. Which of the following statements are true?

    (A) Quantitative tools control the extent of money supply by changing the CRR.

    (B) There are two types of open market operations – outright and upright.

    (C) A fall in the bank rate can decrease the money supply.

    (D) Selling of a bond by RBI leads to reduction in quantity of reserves.

    (E) The RBI can influence money supply by changing the rate at which it gives loan to the commercial banks.

    Choose the correct answer from the options given below:

  3. Paradox of Thrift means :

  4. Match List-I with List-II:

    List-IList-II
    (A) Bank Rate(I) Securities are pledged in order to repurchase
    (B) Marginal Standing Facility(II) Minimum rate at which funds are provided for long term
    (C) Repo Rate(III) Also known as Penal Interest Rate
    (D) Reverse Repo Rate(IV) Central Bank borrows funds from commercial banks

    Choose the correct answer from the options given below:

  5. Which of the following is not a function of Central Bank ?

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