CONTRIBUTION OF NATIONAL INSTITUTION OF TRANSFORMING INDIA IN POLICY MAKING: AN ANALYSIS UNION BUDGET 2022-23 by-Sankalp Kumar & Dr. Snigdha Sarkar
The institutions of administrative and strategies must adapt to new challenges and further more also be based on the founding standards of the Constitution of India, the abundance of knowledge from our social cultural and moral history, and the current sociolect-cultural- financial contexts, reflecting the spirit and transformed complexities of the new India. India’s and its citizens’ aspirations require administrative changes and dynamic policy approach adjustments worthy of seeding and nurturing dramatic shift.
In India, till 2014, the policy making and other planning were used to be done by Planning Commission which was replace by the new body of government2 i.e., the “NITI Aayog (National Institution for Transforming India)”whose main aim or objective is to serve the Indian Government as a think tank. Its role is to make the policies of Central Government and work with the State Government for monitoring progresses of the policy implementation and its after effects in the society3.
Keywords: NITI Aayog, Think Tank, Policy Maker, Sociolect-cultural-financial contexts,Union Budget 2022-2023, Transforming India, New India, India@75.
5 Golden Research Thoughts 1.
‘No country can afford any longer to develop in isolation. Every country has to benchmark its activities to global standards, or else fall behind’ – PM Narendra Modi
NITI Aayog was established on 1st January 2015 as a commission which will give strategic, logical and other directions to the state as well as Central Government over the development of India through the policies. Before the underpinning of NITI Aayog, Chief Ministers, Specialists and Economists were consulted through digital mean by MyGov. NITI Aayog’s first vice-chairman was economist Arvind Panagariya, while its Chief Executive Officer was career bureaucrat Amitabh Kant (CEO) . It further also acts as an ex-officio member with four Union Ministers. It replaces the one-way policy that is centre to state policy. The NITI Aayog through its collaboration with national as well as international experts creates a system which has entrepreneurial, innovations and full of knowledge for the development agenda. It creates and innovate and effective administration which will make government an enabler but not the provider of resort. It focused on technological advancements in the country and capacity up-gradation.
NITI Aayog function with State with the idea of cooperation and competitive federalism, shares a vision in which the strategies and priorities are of national development, it had restructured planning process which earlier used to be taken by Planning Commission into bottom-up Model.
This work is basically concentrating to analyse the current responsibility NITI Aayog as government India’s premier Think Tank and its outcome in the form of policies introduced in Union Budget 2022-23 for transforming India . Therefore this is an analytical cum descriptive research which is aiming to find out the answer for the following questions ;
- What is the primary responsibility of NITI Aayog?
- How is it contributing in Transforming India?
- What are its major contribution in the Union Budget 2022-23?
III. CONCEPTUALISATION OF NATIONAL INSTITUTION OF TRANSFORMING INDIA IN POLICY MAKING
To understand the basic function of NITI and its contribution in policy making in the recent Union Budget one should know the following concepts like;
Planning Commission: The Planning Commission functions as an additional government body. It has limited expertise. The State Government involvement in annual plan meetings is the same as being a spectator. It maintains the “Top-Down” Approach. It has the authority to distribute funds to ministries and state government & legislatures.
NITI Aayog: Whereas the NITI Aayog is a central government advisory body that serves as a government think tank. It entails a widening range of expertise. It follows the essence of Cooperative Federalism; states are equal partners. In planning, it follows the Bottom-Up Approach.
Think Tank: NITI Aayog is a think tank for government, which means that as it generates new ideas, it keeps a fair ideological distance from the current government. It gives the government guidelines and policy recommendations.
Policy Maker: ‘Policy maker’ is a broad word that refers to someone who is in charge of developing or modifying policy. In India, after 2014, NITI Aayog is responsible for making of policy and taking any decision regarding policies.
Sociolect-cultural-financial contexts: The new India includes the combination of sociolect, cultural and financial contexts. Where sociolect includes varieties of speech and occupational class includes in a specific demography and India is a best example of Sociolect context . As India is also famous for diversity in culture and tradition and it’s also effecting the new form India. The sociolect-cultural-financial contexts are closely related and India is unique as well as famous for its uniqueness in its own way.
Union Budget 2022-2023: As per Article 112 of “The Indian Constitution”, the annual Union Budget, also known as the annual financial report, is a declaration of the Govt.’s anticipated receipts and payments for that year. The Union Budget for FY 2022-23 this year focuses on improving infrastructure by focusing on four key areas :
PM Gati-Shakti; Inclusive Development; Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition, and Climate Action; Financing of investments.
Transforming India: A technological revolution, as well as improved access to and sharing of knowledge, is transforming India. While some changes are foreseen and planned as part of this transformation, many are the result of market factors and bigger global trends. The maturation of our systems and polity also means that centralized planning will play a smaller role, which will need to be recast.
New India, India@75: When India celebrates its 75th Independence on August 15, 2022, it became a watershed point in history, when we shifted from the old to the new. The Prime Minister’s ‘Strategy for New India @ 75’ with the guidance of NITI Aayog had three critical messages for New India. First, development must become a global movement in which every Indian recognizes his or her involvement and benefits directly from it in the shape of improved living conditions. Second, a development strategy should support broad-based economic growth in all regions and states, as well as across industries, to promote balanced development. Third, once executed, the approach will close the performance gap between the public and private sectors.
IV. THE PRIMARY RESPONSIBILITY OF NITI AAYOG
NITI Aayog is advancing into a state of art asset with cutting-edge resource centre with the requisite specialists and skills to answer rapidly, stimulate research and innovation, empower the authority with policy coordination plans, agenda, and cope with unforeseen difficulties. It has an affiliated office, the “Development Monitoring and Evaluation Organisation (DMEO)”, a flagship initiative, the “Atal Innovation Mission (AIM)”, and an autonomous institution, the “National Institute of Labour Economics Research and Development (NILERD)”4.
The activities which NITI Aayog undertakes is categorized in 4 types: –
- Policy and Program Framework
- Cooperative Federalism
- Monitoring and Evaluation
- Think Tank, and Knowledge and Innovation Hub
V. CONTRIBUTION OF NITI AAYOG IN TRANSFORMING
Challenges faced by NITI Aayog: The BJP government after coming into power in 2014, came up with the idea of introducing NITI Aayog for India’s Policy making/ framework, monitoring & evaluation institution and a Think tank for the central government for better policies and plans for its citizen. But this institution also faced certain challenges as before 2014 and after independence, the Planning Commission use to work over those subjects of country.
Following are the challenges5 faced by the NITI Aayog: –
- To demonstrate its policymaking prowess, the NITI Aayog should first prioritise from a considerable rundown of 13 objectives while maintaining an unmistakable comprehension of the distinctions among strategies, arrangements and
- To build trust, faith, and confidence more than the Planning Commission, NITI Aayog requires budgetary freedom in terms of revenue and capital expenditure rather than plan and non-plan expenditures, as a higher rate of increase in capital expenditure can eliminate infrastructure investment gaps at all levels of operation in the
Effective Governance in India:For Political and economic integration with the rest of the world the Indian Government must incorporate into policy formulation as well as government operations.6 For effective governance in India, the central government introduced 5 pillars. They were: –
- Pro-people agenda – It will fulfil the aspiration of the general public as well as individual resident
- Pro-active – This will be in anticipating and will responding to the needs
- Participative – This will make involvement of citizenry
- Inclusion– It will include of all groups
- Equality of opportunity – It will provide equity to our country’s youth
- Sustainable development – By protecting environment to promote sustainability development
- Transparency – This will have led to utilize innovation to make government noticeable and
“The National Data and Analytics Platform,” a user ’s web forum that aims to enable effective use of official data, is created by NITI Aayog to reshape India’s data system. The NDAP portal, which has been launched in January 2022, comprises of 400 fully verified and user-friendly sets of data for use by the data analysis and policymaking communities.
To place India as a global leader in use of technologies and tools, NITI Aayog is aimed to establish a powerful ecosystem which begets innovation, encourages the spread of democracy in the development of emerging technologies, and enables their effortless adoption for enhancing the ease of living and doing business.
The mission in the hands for NITI Aayog is not only to collect data on SDGs on a routine basis, but to actively realise the goals/aims and objectives. The “Ministry of Statistics and Programme Implementation (MoSPI)” already has started a parallel process of collaborative efforts with some other Ministries in order to develop indicators which will reflect the SDG goals and targets.
As a first step, NITI Aayog has prepared a rough sketch for the planning of the goals/aims and targets in consultation with MoSPI. Furthermore, the centrally supported course of actions, including, “the ‘core of the core,’ ‘core,’ and ‘elective’ schemes” executed by the states, alongside a portion of the Central Government’s new initiatives, have been mapped. Furthermore, Ministries and States are trying to implement central sector and state schemes which are associated with one or more SDGs.
There are many more fields were NITI Aayog is working for making a society a welfare one, it is ensuring that each and everyone is actively taking part in debates and deliberation at global level.
VI. MAJOR CONTRIBUTION OF NITI AAYOG IN THE UNION
As India approaches to its 100th year since independence, the 2022-23 Budget goals seek to encourage India’s objectives in Amrit Kaal.
- It begins to focus on the growth and welfare of all.
- Technology-enabled developments, energy utilization, and climate action are all being
- Private investment begins to generate a virtuous cycle which has been crowded by public capital
The India in past two years of pandemic witnessed massive economic as well as other sector disturbance but then also India’s GDP had a strongest comeback.
(National Portal of India)
** Source- Indian.g ov.in
The 2022-23 Policy focused on following areas: 7
1. Providing Fiscal space to the States:
- For the current year, the budget for the “Scheme for Financial Assistance to States for Infrastructure Investment” has been extended by INR Rs. 5000/- that is, from 10,000 crores to Estimate Rs. 15,000 crores.
- In 2022-23, Rs.1 lakh crore would be allocated for catalyse general economic investment to the state through 50 years of loans which is free of interest, in addition to standard
- States will be permitted a public debt of 4.0% of GSDP in the year of 2022-23, having 5 percent of that linked to power sector reforms.
2. Agricultural and allied sector:
- Direct reimbursements of Rs.2.37 lakh crore to 1.63 crore farmers/peasants by the government when wheat and paddy is being
- Free of synthetic substance, and natural farming/cultivation will be supported across the county. Farmers’ having possession in 5 km of expansive stretches along the Ganga are the initial
The 2022-23 Budget focused on more such like MSMEs and Industries, Education, Public Investments, Anganbadis, Health, Energy& Climate, Banking, etc. 8
India@75 vision targets included achieving employment levels, particularly boosting the female workforce participation rate, at least to 30% by 2022-2023, in terms of raising the per capita income of economy and hence the overall growth of economy size. This statistical data was with the accordance to government statistics of January-March of 2021 that there was only 16.9%. According to the “Centre for Monitoring Indian Economy’s”unemployment data for December 2021, women made up 23% of the country’s 35 million unemployed who were actively looking for work.
The next “New India” pledge is to double the farmers’ income by end of 2022, relative to 2015-2016s levels. The “National Statistical Office’s” had recently released its 77th round of the “National Sample Survey, Land and Livestock Holdings of Households and Situation Assessment of Agricultural Households,” contains some indicators as to whether this promise can be met.9
Prime Minister Narendra Modi’s commitment was unshakable when he declared India@75 and ‘New India.’ He stated that, similar to “Mahatma Gandhi’s Quit India movement” in 1942, which resulted in India’s independence in less than 5 years, his demand for a “New India” would be realised in the very same time span. He also campaigned for a “mass movement” to establish the “New India.”
VII. FEW OBSERVATIONS FROM THE AUTHOR’S SIDE
NITI Aayog is bringing a lot of new things to the society. It is making a great level of accountability in the system. Whereas, the planning commission was making plans which were evaluated long after the period ends.
The NITI Aayog has set up a Development Monitoring and Evaluation Office, which gathers real-time information about the performance of several Ministries and departments. The information is then used to develop accountability and improve performance at the greatest level of policymaking.
The “Atal Innovation Mission”, which also is part of the NITI Aayog, has already made significant progress in boosting India’s innovation ecosystem. More than 1,500 Atal Tinkering Labs have been built in schools around the country, with the figure set to rise to 5,000 by March 2019.
Before 2014, the Planning Commission was working as the policy maker which has some loop holes which were used by the Politicians and other authorities and the welfare of the people get left out. B.J.P., after coming in power at central level replaced the Planning Commission institution with NITI Aayog (a new institution which will act as a think tank for the government in policy making and other), so that, the welfare of people becomes the main aim of the policy and the institution. The policy which used to be formulated by the “planning commission” earlier first made and then get consulted with the state authority whereas the NITI Aayog first consult which state then begin to formulate the policy for the state or country. Although since, this organisation is formed is not quite for long time that’s why, there are some issues with the institution but the institutions is finding its loop holes so that it can work on it and make a perfect institution example for the welfare of the state and its people. This can be seen in recent Union Budget statement in which policies were altered as like in fiscal state the financial assistance from Rs. 10,000/- crores were changed to Rs. 15,000/- Crores. Even in agricultural sector one can see a major change in the Budget of 2022-23. NITI Aayog maintains to be an example of a country’s professional, reliable, progressive, and responsible constitutional framework, with exemplary work principles.
1Student & Assistant Professor at KIIT School of Law, Bhubaneswar, India Respectively.
2aBhombe Shridhar G, ‘NATIONAL INSTITUTION FOR TRANSFORMING INDIA (NITI) AAYOG’ (2015)
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6NITI AAYOG: TRANSFORMING INDIA’S DEVELOPMENT AGENDA | PRIME MINISTER OF INDIA,
7UNION BUDGET FY 2022-2023| NATIONAL PORTAL OF INDIA, https://www.india.gov.in/spotlight/union-budget- fy-2022-2023
8Press Information Bureau, Highlights of the Union Budget 2022-23, (2022)
9UNION BUDGET 2022-23: JUST 70 WEEKS LEFT FOR INDIA@75 TARGETS, WILL MODI DELIVER THE ‘NEW INDIA’