Question

Which of the following was formed with the aim of ensuring participation of states in economic planning ?

• A. Planning Commission
• B. National Development Council
• C. NABARD
• D. Money Market

Hint:

Think of the planning process hierarchy: The Planning Commission drafted the plans. The National Development Council (with CMs) approved the plans. This ensured a cooperative approach between the Centre and the States.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
The question asks to identify the institution created to act as a bridge between the central government and state governments in the context of India's Five-Year Plans.

Step 2: Detailed Explanation:
The National Development Council (NDC) was established in August 1952. Its primary purpose was to bring state governments into the process of national planning. Its composition included the Prime Minister, all Union Cabinet Ministers, Chief Ministers of all states, and members of the Planning Commission. The NDC served as the apex body for approving the Five-Year Plans, thereby ensuring that states had a voice in the planning process and fostering cooperative federalism.

Step 3: Final Answer:
The National Development Council was formed to ensure the participation of states in economic planning.