Consider the following statements: 1. National Development Council is an organ of the Planning Commission. 2. The Economic and Social Planning is kept in the Concurrent List in the Constitution of India. 3. The Constitution of India prescribes that Panchayats should be assigned the task of preparation of plans for economic development and social justice. Which of the statements given above is/are correct?
Contents13
- A1 only
- B2 and 3 only
- C1 and 3 only
- D1, 2 and 3
Show answer
Answer: (B) 2 and 3 only
Statement 1 is wrong — the NDC (National Development Council) was NOT an organ of the Planning Commission.
It was a separate advisory body.
In fact, the plans made by the Planning Commission were placed before the NDC for its approval and acceptance.
The NDC was above the Planning Commission in the planning hierarchy.
Statement 2 is correct — 'Economic and Social Planning' is listed as Entry 20 in the Concurrent List (7th Schedule) of the Constitution, meaning both the Centre and States can legislate on it.
Statement 3 is correct — Article 243G of the Constitution (added by the 73rd Amendment) prescribes that Panchayats should be assigned the task of preparing plans for economic development and social justice.
So statements 2 and 3 are correct.
The 73rd Amendment made Panchayats constitutional bodies responsible for preparing local development plans, transforming rural governance from administrative convenience to constitutional mandate.
The National Development Council was the apex planning body that approved Planning Commission plans, not a subordinate organ of it, making this a common hierarchical confusion.
UPSC tests whether students understand that economic planning operates at three levels - constitutional provision (Concurrent List), institutional hierarchy (NDC above Planning Commission), and implementation (Panchayats for local plans).
National Development Council & Planning Commission
Indian Polity National Development Council Planning Commission
National Development Council vs Planning Commission: UPSC's Favorite Trap
NDC was NOT an organ of Planning Commission — it was a separate advisory body above it
Planning Commission made plans → NDC approved them → hierarchy was NDC > Planning Commission
Both NDC and Planning Commission abolished in 2014, replaced by NITI Aayog
The Planning Hierarchy
UPSC loves to test the relationship between these two bodies. The National Development Council (NDC) was the apex body in India's planning structure, while the Planning Commission was its technical arm that actually drafted the plans.
NDC vs Planning Commission
Aspect | National Development Council | Planning Commission |
|---|---|---|
Status | Constitutional body (Art 263) | Extra-constitutional body (Cabinet resolution) |
Role | Approved Five Year Plans | Prepared Five Year Plans |
Composition | PM + All CMs + Central Ministers | PM as Chairman + economists/experts |
Hierarchy | Higher in planning structure | Lower — technical arm |
Relationship | Plans came to NDC for approval | Plans went from PC to NDC |
Question Connection
Statement 1 was the trap: it wrongly claimed NDC was an organ of the Planning Commission. The reality was opposite — Planning Commission was subordinate to NDC in the planning hierarchy.
Trap: Statement 1 reverses the hierarchy — NDC was above Planning Commission, not under it
Common confusion: Both dealt with planning, but NDC was the approving authority while Planning Commission was the drafting body
2014 change: Both abolished and replaced by NITI Aayog — but the PYQ tests the old structure
Seventh Schedule & Concurrent List
Indian Polity Economic and Social Planning Concurrent List
Seventh Schedule: Distribution of Legislative Powers
Economic and Social Planning is Entry 20 in the Concurrent List
Concurrent List means both Centre and States can make laws on the subject
In case of conflict, Central law prevails over State law (Art 254)
Constitutional Framework
The Seventh Schedule divides legislative powers between Centre and States. Article 246 operationalizes this division through three lists, with the Concurrent List allowing both levels to legislate on shared subjects.
Three Lists of Seventh Schedule
List | Article | Who Can Legislate | Key Example Entries |
|---|---|---|---|
Union List | List I (97 entries) | Parliament only | Defence, Foreign Affairs, Currency |
State List | List II (66 entries) | State Legislatures only | Police, Agriculture, Land |
Concurrent List | List III (47 entries) | Both Parliament & States | Education, Forests, Economic Planning |
Why Economic Planning is Concurrent
Central planning needed for national coordination and resource allocation
State planning required for local needs and implementation on ground
Joint approach allows both Five Year Plans (Centre) and State Plans simultaneously
Conflict resolution: Central law prevails under Article 254 when Centre and State laws clash
Easy recall: Economic Planning is Entry 20, List III — remember '20 in 3rd list'
Don't confuse: Economic Planning is concurrent, but Finance and Taxation have separate specific entries
UPSC loves: Questions mixing up which planning/economic entries are in which list
73rd Amendment & Panchayati Raj
Indian Polity Constitution Panchayats economic development social justice
73rd Amendment: Constitutional Foundation of Panchayati Raj
73rd Amendment (1992) added Part IX and Article 243 to Constitution for Panchayati Raj
Article 243G mandates Panchayats prepare plans for economic development & social justice
Eleventh Schedule lists 29 subjects transferred to Panchayats
Constitutional Mandate
The 73rd Amendment Act of 1992 constitutionalized Panchayati Raj by adding Part IX (Articles 243-243O) to the Constitution. This gave constitutional status to rural local self-government and made certain provisions mandatory for all states.
Key Constitutional Provisions
Article | Provision | Significance |
|---|---|---|
Article 243 | Definitions of Panchayat terms | Basic framework |
Article 243B | Three-tier system mandatory | Gram → Block → District |
Article 243D | Reservation for SC/ST/Women | Social justice mechanism |
Article 243G | Powers & functions of Panchayats | Planning mandate for development |
Article 243I | State Election Commission for elections | Independent electoral process |
Planning & Development Role
Article 243G specifically mandates Panchayats to prepare plans for economic development and social justice
Eleventh Schedule provides 29 functional areas including agriculture, health, education, rural roads
State governments must devolve powers through legislation — Constitutional provision is not self-executing
Annual planning at village level feeds into block and district plans for bottom-up development
Three-Tier Panchayati Raj System
# Panchayati Raj (73rd Amendment)
## **Gram Panchayat** (Village)
- Gram Sabha
- Sarpanch
- Direct elections
- Village development
## **Panchayat Samiti** (Block)
- Intermediate tier
- Block development
- Coordination role
- Rural planning
## **Zilla Panchayat** (District)
- District planning
- Apex rural body
- Policy coordination
- Resource allocationDirect Constitutional mandate: Article 243G prescribes planning function — it's not optional for states
Not just advisory: Panchayats must prepare plans, not just implement Central/State plans
Both dimensions: Economic development AND social justice — UPSC often tests this dual mandate
73rd vs 74th: Don't confuse — 73rd is rural (Panchayats), 74th is urban (Municipalities)