The Reorganised Planning Commission A Study in the Implementation of Administrative Reforms

Abstract

The Reorganised Planning Commission emerged in the late 1960s as a response to criticisms and evolving requirements in India’s planning machinery. Although the Planning Commission had functioned since 1950, there had been growing concerns about its organisational structure, the involvement of multiple Minister-Members, and inefficiencies in plan appraisal and execution. Following delays in the formulation of the Fourth Five Year Plan and increasing economic challenges, the Government leveraged the opportunity of resignations and retirements of Commission Members to undertake a full-scale reconstitution. Guided by recommendations from the Administrative Reforms Commission (A.R.C.) and its Study Team, the reorganisation reinforced the Commission’s non-statutory and advisory character, emphasizing expertise, integrity, and impartiality in the selection of whole-time Members. The number of Members was streamlined to five, with the Prime Minister continuing as Chairman and the Finance Minister as a Member, while other Ministers were no longer formally associated to prevent political interference. Members were assigned specific areas based on expertise, collectively taking key decisions under the leadership of the Deputy Chairman, who also acted as the main link between the Central Cabinet, State Chief Ministers, and the Commission. The National Development Council (N.D.C.) was reconstituted and its functions redefined to ensure greater political support and systematic oversight of the National Plan, including prescribing guidelines for plan formulation, reviewing progress, and addressing social and economic policy issues. This reorganisation strengthened the Planning Commission’s role in policy coordination, planning efficiency, and effective national development.