economics medium MCQ

Unlike the erstwhile Planning Commission, the NITI Aayog lacks which of the following critical financial powers?

  1. The power to formulate long-term strategic vision documents
  2. The power to act as a directional think tank for the government
  3. The power to allocate discretionary funds to ministries and state governments
  4. The power to foster cooperative federalism through structured dialogues

Answer: The power to allocate discretionary funds to ministries and state governments

The Planning Commission was a powerful body that could allocate plan funds to various ministries and states, often using this financial leverage to enforce policy compliance. NITI Aayog was deliberately stripped of these financial allocation powers (which now rest with the Finance Ministry) to allow it to focus purely on policy design, strategic thinking, and monitoring without bureaucratic entanglements.

Topic Indian Economy - Institutions
Exam Relevance UPSC Prelims, SSC CGL
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