Planning Commission Tnpsc Notes

Planning Commission of India

The planning commission of India was constituted in the year 1950 in March. It was established by a resolution of the Government of India under the chairmanship of Pandit Jawaharlal Nehru.

Its objective was to prepare a plan for the “most effective and balanced utilization of the country’s resources”. The planning commission played an advisory role with regard to the formulation of the plans.

The Planning commission is a non-constitutional and a non-statutory body and it is responsible for the formulation of five-year plans.

It is the duty of the central government and state government to execute the planning programmes. Currently, the planning commission was replaced by Niti Aayog.

Functions of Planning Commission

  • The planning commission has the job of assessing the resources of the nation so that they could be used for the future needs of the country.

  • These included materials are capital, human resources, etc. It is the primary duty of the commission to prepare the plans so that these resources could be used effectively and balanced manner.

  • The resources had to be allocated among various sectors as per priorities and the stages of progress and completion of programmes were to be laid down to the commission.

  • The commission needs to identify the conditions and issues that would be a hindrance to the development.

  • It had to examine the ways by which the plan could be effectively implemented in the prevailing conditions of the nation.

  • It also determined the stage-by-stage execution of the plan. The planning process had to be assessed periodically so that the right strategies could be used to implement the plans.

  • In the process, the planning commission had the function of advising the central and state government with regard to the appropriate strategies of planning.

  • The commission also had to analyze particular issues and advice the government.

  • It was the role of the planning commission to determine the rate of growth of the economy specifying the targets of the plan period for every sector.

Composition and Organization of Planning Commission

The Planning commission consisted of the Prime Minister and four full-time members and a few part-time members of cabinet rank. The full-time members were the person who has excelled in the technical field, economy, and administration.

The Prime minister is the chairman of the planning commission enabling the coordination of the functions of the commission. As per the recommendations of the Administrative Reforms-Commission changes were made in the composition of the commission.

It included the Prime Minister as the Chairman who presides over the meetings of the commission, a deputy chairman who is the de-facto executive head and who has the responsibility of formulating the draft of the plan to the central cabinet, a secretary, four full-time members, and some cabinet ministers as part-time members.

The finance minister and planning ministers are ex-officio members of the commission and a member secretary who is usually a senior IAS officer is also part of the commission. The functioning of the administration was coordinated by the additional secretary.

Senior officers in the ranks of deputy secretaries and undersecretaries had to monitor the progress of the programmes. There were no representatives from the state government and it was a central body. The planning commission of India worked on the principle of collective responsibility.

It has three organs namely the general division, subject division, and Administrative division. The general division relates to the entire economy and the subject division concerns specific areas of development like food and agriculture, power and irrigation, transport, etc.

The commission also includes the General Administration branch and evaluation divisions. Along with these, various other bodies also worked with the Planning Commission for the formulation and execution of plans. They are: National Planning Council, National Development Council (NDC)

Efforts Towards Poverty Eradication

One of the major problems in India was poverty. The Planning Commission aimed not only at increasing the per capita income but also improving the quality of life of the people. The growth of the economy necessitated the inclusion of all sectors. It was also understood that the quality of life of the common man was interrelated to his economic conditions.

So, it was realized by the state that it was important to guarantee people a decent standard of living along with proper access to education and health care which are next to food, clothing, and shelter. But the challenge was that economic growth and reduction of poverty are not always related.

From the fourth five-year plan, the government focussed on this issue and concentrated on ‘garibi hatao’ during the early1970’s. Employment generation was considered to be one of the measures for the reduction of poverty. There were many problems due to unemployment and underemployment.

In all the five-year plans emphasis was given to employees. The rural-urban divide was another important area where the Planning Commission had to concentrate. In the process of economic development, industrialization and urbanization increased and this had its impact on Indian society and economy.

The disparity in the development of the rural and urban population would foster inequality which is against the principle enshrined in the constitution. The Planning Commission recommended many programmes for the development of the rural economy so that the development of both the rural and urban populations could be ensured.


What is planning commission of India?

It is an institution in the government of India, that formulates the five-year plans and also formulates the resources planning.

Chairman of planning commission of india 2018?

Shri Montek Singh Ahluwalia

Is the planning commission of India is a statutory body?

No, the Planning commission is a non-constitutional and non-statutory body.

Planning commission of india was set up in the year?

March 1950.


Planning Commission is established in March 1950. Its main objective is to formulate five-year plans. It was finally replaced by Niti Aayog on January 1, 1950, by a cabinet resolution.

0 0 votes
Article Rating
Notify of
Oldest Most Voted
Inline Feedbacks
View all comments
* * All the Notes in this blog, are referred from Tamil Nadu State Board Books and Samacheer Kalvi Books. Kindly check with the original Tamil Nadu state board books and Ncert Books.
Would love your thoughts, please comment.x