For- UPSC / MPPSC

MPPSC MAINS
NOTES (English)
PAPER-2, PART-A
UNIT-2

Commissions

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Unit - 2
Comptroller and Auditor General
• The Comptroller and Auditor General of India (CAG) is an authority established by Part 5 of the Constitution
of India to audit all accounts of the Government of India and of all State governments.
• It is mentioned in Article 148 to 151.
• His report is looked into by the Public Accounts Committee.
• The Comptroller and Auditor General of India works as an independent body and is not controlled by the
government.
• The Comptroller and Auditor General is also the head of the Indian Audit and Accounts Service.
• Through this institution, the accountability of the government and other public authorities (public money
spenders) is ensured for Parliament and state legislatures and this information is given to the general public.
Background
• The office of the Accountant General was established in the year 1858 (the same year when the British took
over the administrative control of India from the East India Company).
• Sir Edward Drummond was appointed as the first Auditor General in the year 1860.
• After some time, the Auditor General of India came to be known as the Auditor and Accountant General of
India.
• The post was renamed as Comptroller and Auditor General in the year 1866 and in the year 1884 it was
renamed again as the Comptroller and Auditor General of India.
• The Auditor General was freed from government control under the Government of India Act, 1919 as the
post was given statutory status.
• After independence, Article 148 of the Indian Constitution provided for the appointment of a Comptroller
and Auditor General by the President of India.
• In the year 1958, Jammu and Kashmir was included in the jurisdiction of CAG.
• In the year 1971, the Central Government enacted the Comptroller and Auditor General's (Duties, Powers
and Conditions of Service) Act, 1971.
• The Act gave the CAG the responsibility of both accounting and auditing for the central and state
governments.
• In 1976, it was freed from the work of compilation and maintenance of accounts of the Central Government
as accounts were separated from audit and accounts were departmentalised.
Constitutional provision
Article 148
(1) There shall be a Comptroller and Auditor General of India - Whom the President shall appoint by
warrant under his hand and seal.
 He shall be removed from office only in the same manner and on the same grounds as a Judge of the
Supreme Court is removed.
(2) The Comptroller and Auditor General shall, before entering upon his office, make and subscribe before
the President or some person appointed by him an oath or affirmation according to the form set out in the Third
Schedule.
(3) The salary and other conditions of service of the Comptroller and Auditor General shall be such as
may be determined by Parliament by law.

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 The salary, powers and service conditions of the Comptroller and Auditor General will not be changed to
his disadvantage after his appointment.
(4) The Comptroller and Auditor General shall, after ceasing to hold office, not be eligible for any other post
under the Union Government or the Government of any State.
(5) Subject to the provisions of the Constitution and any law made by Parliament, the administrative powers of
the Comptroller and Auditor-General shall be prescribed by rules made by the President.
(6) The administrative expenses, salaries, allowances and pensions of the office of the Comptroller and
Auditor General shall be charged on the Consolidated Fund of India which cannot be voted upon by the
Parliament.
Article 149
 Relates to the duties and powers of the Comptroller and Auditor General of India.
Article 150
Format of accounts of the Union and the States
 The accounts of the Union and of the States shall be kept in such form as the President may, on the advice
of the Comptroller and Auditor General of India, prescribe
Article 151 - Audit Report
 The Comptroller and Auditor General of India will place the reports of the Union before the President, who
will cause them to be laid before each House of Parliament, while the reports on the accounts of the States
will be presented before the Governor, who will cause them to be laid before the State Legislature.
 As per the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971,
the following are the powers and duties of the Comptroller and Auditor General:
 CAG examines all types of expenditure in the accounts relating to the Consolidated Fund of India and
the Consolidated Fund of each State/Union Territory having a Legislative Assembly.
 Examines the Contingency Fund of India and the Public Account of India as well as all expenditure
from the Contingency Fund and Public Account of each State.
 Audits all trading, manufacturing, profit and loss accounts, balance sheets and other additional accounts
of any department of the Central Government and State Governments.
 Examines the income-expenditure of all bodies, authorities, government companies, corporations and
bodies financed from the revenue of the Center or the States, when required by the relevant laws.
 Audits the accounts of any other authority, such as a local body, on the recommendation of the President
or the Governor.

Functions of CAG
1. He audits all non-related accounts arising out of the Consolidated Fund of India, the Consolidated Fund of
the State and the Consolidated Fund of the Union Territories having Legislative Assemblies.
2. The CAG audits all expenditure from the Public Account and Contingency Fund of India and every State.
3. Conducts the audit of business profit and loss account by the CAG and any Ministry and Department of the
State Government.
4. The CAG audits the receipts and expenditure of the Center and the States.
5. The CAG audits the receipts and expenditure of all those institutions which are given grants by the
government.
6. The CAG audits other institutions like local bodies at the instance of the President and the Governor.

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7. The CAG advises the President and the Governor as to the form in which the accounts of the Center and the
States should be maintained.
8. The CAG submits the audit report of the Central Government to the President and the report of the audit of
the states to the Governor.
9. The CAG acts as a guide to the Public Accounts Committee of the Parliament and the Legislative
Assembly.
10. The CAG verifies the receipt of proceeds of tax or duty.
11. The CAG prepares the accounts of the State Government.
Importance of CAG
1. Every year, CAG brings innumerable scams to light, due to which public and people's representatives
become aware of them.
2. The CAG examines the reasonableness of the expenditure which can be imposed on the government.
3. Although the function of CAG is similar to that of post-mortem, but still it is useful because post-mortem
can find out the cause of death and reduce the possibility of future death.

Provisions for the freedom of CAG

1. The CAG is appointed by the Seal and Warrant of the President and holds office for a term of 6 years or till
he attains the age of 65 years. (Whichever is earlier)
2. The Chief Justice can be removed by the President only according to the procedure laid down in the
Constitution which is similar to the way a Supreme Court judge is removed.
3. The administrative expenses, salaries, allowances and pensions of the office of the Comptroller and Auditor
General shall be charged on the Consolidated Fund of India which cannot be voted upon by the Parliament.
4. Once retired/resigned from the post of CAG, he cannot hold any office under the Government of India or
any State Government.
5. The pay and other service conditions of the CAG cannot be reduced after appointment.
6. His administrative powers and the conditions of service of officers serving in the Indian Audit and Accounts
Department are determined by the President only after consultation with him.
7. Note - The CAG acts as a guide, friend and mentor of the Public Accounts Committee of the Parliament.
Criticism of CAG
1. The appointment process of the CAG is not transparent.
2. The CAG is a single member body, hence the possibility of arbitrariness remains.
3. Due to lack of administrative experience, the CAG sometimes criticizes administrative policies on economic
grounds only.
4. There is no bar on holding constitutional office or contesting elections after the CAG leaves office. So there
is a possibility of bias.
5. The CAG has not specified any specific time period for audit. Sometimes CAG reports are 2-3 years old.
which does not serve any purpose.
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Civil Services
 Civil Services in India were born during the British rule to fulfill their ambitions and objectives.
 The selection of civil servants in India during the Company's rule was done by a selection committee and
board of directors of the Haileyberry College.
 In 1854, under the chairmanship of Macaulay, ' The Committee on indian civil Services ' suggested to
make the appointment of public servants on the basis of competitive examination.
 In pursuance of this, the first competitive examination of the Indian Civil Service was held in London on
July 16, 1855.
 Macaulay fixed the age limit of 18-23 years for the competition.
 In 1860, the maximum age limit for admission to the Civil Services Competitive Examination was reduced
to 22 years.
 In 1866 it was reduced to 21 years.
 Therefore, in 1874, under the leadership of Sir Surendranath Banerjee, a strong movement against the
reduction of the age of entry into civil service in India took place.
 Viceroy Lord Dufferin appointed the Aitchison Commission under the chairmanship of Sir Charles
Aitchison to consider whether the minimum age for the civil service examination should be increased or not
and whether the examination should be held simultaneously in India and England.
 The commission opposed the holding of civil service examinations simultaneously in England and India, but
suggested that the maximum age for appearing in the examination should be 23 years.
 As a result, in 1892 the minimum age limit was fixed at 18 years and maximum at 23 years.
 The Islington Commission (which was appointed in 1912 under the chairmanship of Lord Islington) also
suggested in its report to conduct competitive examination for civil service in India and England
simultaneously.
 The Government of India Act 1919 (also known as the Montagu-Chelmsford Reforms) decided to hold the
Civil Services Examination simultaneously in England and India, as well as to increase the number of
Indians in the Civil It was decided to appoint Indians to one-third of the posts.
 For the first time, the Civil Services Examination was held simultaneously in London and Allahabad in
1922.
Note - From 1855 to 1921, the Civil Services Examination was held in London.
 The civil services were given a systematic form by the Government of India Act 1919.
 The services which were under the direct control of the Central Government of India were named as Central
Services. Appointments to these services were made by the Governor General.
 The Imperial Services were renamed as All India Services. He was appointed by the Minister of India.
 The third type of services were provincial services, which were named after their respective provinces.
 The first Public Service Commission was established in 1926 as the Central Public Service Commission on
the suggestion of 'Lee Commission'. It had a chairman and four other members.
 Sir Rose Barker was its first chairman.

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 Its name was changed to Federal Public Service Commission under the Government of India Act 1935.
 On 26 January 1950, on the coming into force of the Indian Constitution, the name of the Federal Public
Service Commission (FPSC) was changed to the Union Public Service Commission (UPSC).
Key facts -
 The first Indian to be selected for the civil service was Satyendra Nath Tagore, the elder brother of
Rabindra Nath Tagore.
 Lord Cornwallis is considered to be the father of civil service in India.
 To find out the replacement of the Indian Civil Service and the Indian Police Service, the Provincial
Premiers Conference was organized in October 1946, which was presided over by Sardar Vallabhbhai Patel.
He supported the retention of the Indian Civil Service and suggested renaming it to the Indian
Administrative Service. Thus Patel is called the father of the Indian Administrative Service.
Union Public Service Commission
 The Union Public Service Commission was established on 1 October 1926 on the recommendation of Lee
Commission or Royal Commission.
 It was reconstituted by the Government of India Act 1935 and was named Federal Public Service
Commission.
 After independence, it was named Union Public Service Commission and Constitutional status was given
in Article 315.
 The Union Public Service Commission is a constitutional body established by the Constitution of India to
conduct examinations for the appointment of officers to the civil service of the Government of India.
 Article 315-323 under Part-14 of the Constitution provides for the constitution of a Federal Public Service
Commission and a State Public Service Commission for the States.
Structure
 The Union Public Service Commission is headed by a Chairman
 The number of members of the Union Public Service Commission is determined by the President.
 Generally it consists of 9 to 11 members.
 They are appointed by the President.
 Their tenure is of 6 years till they attain the age of 65 years.
 The Chairman and members of the Union Public Service Commission can be removed by the President on
the advice of the Supreme Court.

Constitutional Provision

Article-315. Public Service Commission for the Union and the States
 There shall be a Public Service Commission for the Union and a Public Service Commission for each State.
 Two or more States may agree that there shall be one Public Service Commission for that group of States
and if a resolution to that effect is passed by each House of the Legislature of the State or where there are

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two Houses, by each House Parliament may by law provide for the appointment of a United States Public
Service Commission to meet the needs of those States.
 Article-316 Appointment and term of office of members
 The Chairman and other members of the Public Service Commission shall be appointed by the President,
if it is a Union Commission or a Joint Commission, and, if it is a State Commission, by the Governor of the
State.
 Provided that the nearest half of the members of every Public Service Commission shall be such persons
who, on the date of their respective appointments, have held office under the Government of India or the
Government of a State for at least ten years and during the said period of ten years In the computation there
shall also be included any period before the commencement of this Constitution during which any person
has held office under the Crown in India or under the Government of any Indian State.
 If the office of the Chairperson of the Commission becomes vacant for any reason, the President in the case
of a Union Commission or a Joint Commission, and in the case of a State Commission, the Governor of that
State, may appoint any member of the Commission to perform the duties of the Chairperson for the purpose.
Will appoint for
 Member, Union Public Service Commission, for a term of 6 years from the date on which he enters upon his
office or till he attains the age of 65 years and in the case of State Commission or Joint Commission till he
attains the age of 62 years, whichever is earlier Yes, he will hold his post.
 A member of a Public Service Commission may, by writing under his hand addressed to the President in the
case of a Union Commission or a Joint Commission and to the Governor of a State in the case of a State
Commission, resign his office.
 A person who holds office as a member of the Public Service Commission shall not be eligible for
reappointment to that office on the expiration of his term of office.
 Article-317 Removal and suspension of a member of the UPSC.
 The Chairman or any other member of the UPSC shall be removed only on the ground of misbehavior by
order of the President on the basis of a report by the Supreme Court on an inquiry held under Article 145.
 In the case of a Union or Joint Commission, the President and in the case of a State Commission, the
Governor may suspend the Chairperson or a member during the enquiry.
 Other grounds -
 is adjudged insolvent,
 engages during his term of office in any paid employment outside the duties of his office,
 is, in the opinion of the President, unfit to continue in office by reason of infirmity of mind or body.
 Article-318. Power to make regulations as to the conditions of service of the members
and staff of the Commission.
 The President in the case of a Union Commission or a Joint Commission and the Governor of a State in the
case of a State Commission may, by regulations, determine the number of members of the Commission and
their conditions of service.

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 Make provisions regarding the number of members of the staff of the Commission and their conditions of
service.
 The conditions of service of a member of the Public Service Commission shall not be varied to his
disadvantage after his appointment.
Article- 319. Prohibition regarding holding other post on expiry of tenure
 The Chairman of the Union Public Service Commission shall not be eligible for any further employment
under the Government of India or the Government of any State.
 The Chairman of a State Public Service Commission shall be eligible for appointment as the Chairman or
other member of the Union Public Service Commission or as the Chairman of any other State Public Service
Commission, but Will not be eligible for any employment under the Government of India or the
Government of any State..
 A member other than the Chairman of the Union Public Service Commission shall be eligible for
appointment as the Chairman of the Union Public Service Commission or as the Chairman of a State Public
Service Commission, but the Government of India or the Government of any State Will not be eligible for
any employment.
Article- 320 Functions of Public Service Commissions
 To conduct examinations for appointment to the services of the Union.
 Direct recruitment by selection through interview
 Appointment of officers by promotion/deputation
 Preparation and amendment of recruitment rules for various services and posts under the government
 Disciplinary matters related to various civil services
 Advise the Government on any matter referred to the Commission by the President of India
Article- 321 Power to expand the functions of Public Service Commissions
 In relation to UPSC and JPSC, it has been given to the Parliament and in relation to SPSC, to the
Legislature of any state.
Article- 322
 The expenditure of the Union or State Public Service Commission, (such as any salary, allowances and
pension etc.) shall be charged on the Consolidated Fund of India or the Consolidated Fund of the State.
Article-323
 The UPSC shall submit annually a report to the President regarding non-acceptance of the advice of the
Commission on the work done by the Commission along with a memorandum and the President shall cause
such report to be laid before each House of the Parliament.
 The SPSC will report annually to the Governor regarding non-acceptance of the advice of the
Commission regarding the work done by the Commission and the JPSC will report annually to the
Governors of the respective states. The Governor shall cause the report to be placed before the State
Legislature.

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Provisions for impartiality and independence of the Union Public Service Commission
1. They can be removed only through the process described in the constitution.
2. After retirement, the chairman and members cannot be kept in any other government service under the
central or state government, although the members can be made chairman in the Union Public Service or
State Public Service Commission.
3. There is no provision for re-appointment of the Chairman of the Union Public Service Commission.
4. It can conduct examinations for a State on the request of the Governor and after the approval of the
President.
5. Advises the Government regarding the pension of the members of the civil service.
6. It advises Religious Ministries on a number of subjects such as Cadre fixation, Cadre change etc.
7. Promotion of state servants as All India servants.

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Madhya Pradesh Public Service Commission

 Under Section 118(2) of the States Reorganization Act 1956, Public Service Commissions for the erstwhile
Madhya Pradesh and Madhya Bharat states eliminated from 1-11-1956.
 According to Article 315 of the Constitution and Section 118(3) of the States Reorganization Act 1956, on
the recommendation of the Ministry of Home Affairs, the formation of the MPPSC by order of the
President.
Established:- November 1, 1956
Basis:- Article 315 (Part-14) of the Constitution and Section 118(3) of the States Reorganization Commission
Act 1956.
Nature:- Constitutional body.
Headquarters:- Indore
First President:- D V Rege (November 1, 1956 to September 17, 1957).
Current President :- Rajesh Lal Mehra
First Exam:- 1958
Members:- 1+ 4 (1 Chairperson+ 4 Members)
Secretary:- Shri Prabal Sipaha (IAS)
Members:- Chandrashekhar Raikar, Devendra Singh Markam and Krishnakant Sharma
 The Chairman, Board of Revenue, Madhya Pradesh shall receive the salary equal to that of the Chairman
and each other member shall get the salary equal to that of the Administrative Member of the Board of
Revenue, Madhya Pradesh.
 Madhya Pradesh Service Commission (Conditions of Service) Regulations, 1973. With effect from 1st
April, 1972.
Formation -
 State Public Service Commission to be constituted by Article 315(1)

Appointment -

 Art. 316 The members and chairman of the State Commission shall be appointed by the Governor.

Conditions -

 Art. 316 Half of the members of the Public Service Commission shall be such members who, on the date of
their appointment, have held office for at least 10 years under the Government of India or the Government
of any State. This period of ten years shall also be reckoned from the period before the commencement of
the Constitution.

Vacant Post Status -

 If the office of the Chairman of the Commission becomes vacant or if any Chairman is unable to perform
the duties of his office by reason of absence or for any other reason. Then the governor may appoint an
acting Chairman from among the members.

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Term of office -
 The Chairman and Member of the State Public Service Commission shall hold office for a term of 6 years or
till he attains the age of sixty two years (62 years), whichever is earlier.
 Note- The age of the chairman and members of the State Public Service Commission was increased from 60
to 62 years by the 41st Constitutional Amendment Act 1976.
 A member of the State Commission may resign his office by writing under his hand addressed to the
Governor.
 316 (3) A person who holds office as a member of a Public Service Commission shall, on the expiration of
his term of office, not be eligible for re-appointment to that office.
Removal-
 According to Article 317, only the President can remove the chairman and members of the State Public
Service Commission.
 The members of the commission's chairman can be removed only on the basis of the report given to the
President by the Supreme Court (Article 145) on the grounds of misconduct, otherwise not.
Other grounds -
1.If he has been declared insolvent
2.Engaged during the term of office in any paid employment outside the duties of his office
3.On account of infirmity of mind or body in the opinion of the President
4.According to the constitution, the advice given by the Supreme Court regarding removal is binding on the
President
5. The President and members of the State Civil Service can be suspended by the Governor during the
investigation.
Power to make regulations regarding the conditions of service of members and employees of the
Commission (Article 318) - The Governor in the case of a State Commission and the President in the case of a
Joint Commission may make the following rules.
1. Regarding the number and conditions of service of the members of the Commission
2. Regarding the number and conditions of service of the employees of the Commission
3. Provided that the conditions of service of the members of the Public Service Commission shall not be varied
to their disadvantage after their appointment.
Prohibition regarding holding of office by the members of the Commission on ceasing to be such
members (Article 319):-
1. The Chairman of the State Public Service Commission shall be eligible to become the Chairman or Member
of the Union Public Service Commission or the Chairman of other State Public Service Commission.
2. A member of the Commission shall be eligible to be appointed as the Chairman, Member or Chairman of
the same or other Public Service Commission of the Union Public Service Commission.
3. The Chairperson or a Member shall not be eligible for any other employment under the State Government or
the Government of India.
Functions of public services (Article 320) :-
1. Conduct of examinations for appointment to state services
2. Duty of the Public Service Commission to give advice on the following subjects as directed by the Governor
-
a. On all matters relating to methods of recruitment
b. In making appointments to civil services and posts.
c. On the principles of promotion and transfer from one service to another and the suitability of candidates
for such appointment, promotion or transfer.
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d. All disciplinary matters while working in a civil capacity in the State Government
e. To claim reimbursement of expenses incurred by him in defense of legal proceedings against him for the
performance of his duties.
f. Claim of pension and determination of the same amount in respect of loss caused to a person during the
course of work under the State Government.
Limitations:- The Commission will not be approached in the following cases.
a. On the issue of reservation of appointments or posts for backward castes.
b. On the issue of taking into account the claims of Scheduled Castes and Scheduled Tribes for
appointment to these services and posts
 The Governor can remove any post, service or subject from the purview of the State Public Service
Commission.
 Article 320(5):- The Governor may make rules relating to the functions, services, posts relating to the State
Public Service Commission and shall be laid before each House of the Legislature for at least 14 days. Its
amendment or repeal is completed in the same session in which it is laid.
Power to extend the functions of the Public Service Commission (Art. 321) - Legislature may make
provision regarding additional functions.
Expenses of the Public Service Commission (Article 322):- Salary, allowances and pension of the members
or employees of the commission will be given from the consolidated fund of the state.
Reports of the Public Service Commission (323):- It shall be the duty of the State Commission to report
annually to the Governor of the State about the work done by the Commission and it shall be the duty of the
Joint Public Service Commission to report to each of the States whose needs Joint Public Service Commission
has been constituted for this. That he shall report his works to the Governor every year.
 The Governor in cases where the advice of the Commission has not been accepted. Then the report along
with the reasons for rejection will be placed before the Legislature.
Public Service (General Conditions of Service) Act 1961 Rule Section - 5
(a) Must be a citizen of India.
(b) Should be a subject of Sikkim.
(c) Must be a person of Indian origin who has come over from Pakistan with the intention of permanently
settling in India.
(d) Must be a subject of Nepal or of any Portuguese or French territory in India.
Comment -
1. Persons who migrated to India from Pakistan before 13th July, 1948 and have been ordinarily residing in
India since then.
2. Such persons who came to India from Pakistan after 18th July, 1948 and who have got themselves
registered as citizens of India.
MP Public Service Commission (Conditions of Service) 1973 Rule Section-3
1. The Commission shall consist of not more than five members, the Governor may appoint any one of the
members as its Chairman.
2. Whenever the office of the Speaker becomes vacant or when the Speaker is absent, sick or otherwise unable
to discharge his functions, the Governor shall appoint any other member to perform the administrative
duties of the Chairman during the vacancy of such office or the absence of the Chairman, as the case may
be. Can give instructions to follow.

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NITI – National Institution for Transforming India

 The National Institution for Transforming India, also known as NITI Aayog, was formed through a
resolution of the Union Cabinet on 1 January 2015. Which replaced the Planning Commission constituted
on 15 March 1950?
 NITI Aayog is the premier policy think tank of the Government of India, providing directional and policy
inputs.
 NITI Aayog developes strategic and long-term policies and programs for the Government of India, as well
as provides relevant technical advice to the Center and the States.

Administrative Structure of NITI Aayog

 Chairman – Prime Minister
 Governing council
 prime minister
 ex-officio member
 vice president
 full time member
 Chief Minister and Lieutenant Governor
 special invitee
 Administrators of Chandigarh, Andaman and Nicobar, Lakshadweep, Dadar Nagar Haveli and Daman
Islands
 Regional council
 Convened by the Prime Minister to deal with specific regional issues or issues affecting more than one state.
 Chief Ministers and Lieutenant Governors of the respective states Members
 The Prime Minister or his nominee presides over the meeting.
 Vice President - Appointed by the Prime Minister
 Current Vice President - Dr. Suman K. Barry
 First Vice President - Arvind Panagariya
 Second Vice President - Dr. Rajeev Kumar
 Current CEO Parameswaran Iyer (of the rank of Secretary to the Government of India)
 1st CEO - Sindhu Shri Khullar
 Governing Council (Chief Ministers of all States and Lieutenant Governors of Union Territories)
 Whole (Full) Time Member
1. Shri V.K. Saraswat (Former DRDO Chief)
2. Prof. Ramesh Chand (Agriculture expert)
3. Dr. V.K. Paul (Public Health expert)
4. Arvind Virmani (Economist)

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 Ex-officio member
 Up to 4 members of the Union Council of Ministers nominated by the Prime Minister.
 Special Invitees
 Four members, experts in different fields, nominated by the Prime Minister.
 Ad-hoc Membership
 2 ex-officio members by rotation from leading research institutions.
 Institutions affiliated to NITI Aayog
1. National Institute of Labor Economics Research and Development (Formerly known as - Institute of
Applied Manpower Research)
2. The Development, Monitoring and Evaluation Office
 Functions / Role / Features of NITI Aayog
1. Policy formulation and program design.
2. Promotion of cooperative federalism.
3. Monitoring and Evaluation.
4. Think-Tank and Knowledge and Innovation Hub.
5. Implement schemes and initiatives for rural development.
6. Ensure that economic strategy and policy work in the interest of national security
Objectives of NITI Aayog
• To enhance the spirit of federal partnership, recognizing that strong states make a strong nation, to
continuously support the states through structured support mechanisms.
• To develop mechanisms for making credible plans at the village level and progressively to higher levels of
government.
• Economic strategy and policies have been incorporated in the interests of national security.
• To pay special attention to those sections of the society who have not benefited adequately from economic
progress.
• Encouraging partnerships between key stakeholders, academic and policy research institutions such as
national and international think tanks.
• To create a support system for knowledge, innovation and entrepreneurship in collaboration with national
and international experts, practitioners and other partners.
• To provide a forum for resolution of inter-sectoral and inter-departmental issues to accelerate the
implementation of the development agenda.
• To establish states as state of the art resource centers, centers of research on governance and adoption of
best practices in sustainable and equitable development and to reach them to various stakeholders.
Two major hubs of NITI Aayog
 Team India Hub - Acts as an interface between the States and the Centre.
 (Knowledge and Innovation) Hub - acts like a think-tank of NITI Aayog.
 NITI Aayog has released three documents, which include a 3 year action agenda, a 7 year medium
term strategy document and a 15 year target (goals) document.

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 For- UPSC / MPPSC

Importance of NITI Aayog

 Cooperative Federalism
 State Governments have been given prominence in the working of NITI Aayog and it also accelerates the
process of resolution of issues between Central Ministries and States and Union Territories.
 Competitive Federalism
 In the indices developed by NITI Aayog, there is competition among the states for better performance.
These indices measure incremental annual results in important social sectors such as the Digital
Transformation Index, the Innovation Index, the Health Index, etc.
 Focus on inclusive growth
 It has launched a special initiative focusing on the transformation of 115 aspirational districts. NITI Aayog
is also a nodal body to oversee the implementation of the Sustainable Development Goals.
 Evidence based policy making
 It focuses on policy making based on sufficient data. As such it has encouraged planning based on three-
year work agenda, Composite Water Management Index, Geographic Information System (API) etc.
 Economic recovery
 It has published policy on reforms in Agricultural Produce Marketing Committee Act (APMC),
rejuvenation of fertilizer sector, increase in farmers' income, Model Agriculture Land Leasing Act etc.
 Knowledge and Innovation Center
 It acts as an information repository as it is involved in compiling, disseminating and emulating best
practices in all the states. NITI Aayog has also started Atal Innovation Mission. through this
 Global Entrepreneurship Summit, 2017 was also organized.
 Balanced Regional Development
 Such as focusing on areas like the North-East. For example, the NITI Forum for the Northeast, which aims
to identify the various impediments in the way of rapid, inclusive and sustainable economic development
of the North Eastern Region (NER). This NITI Forum is co-chaired by the Vice Chairman of NITI Aayog.

Some Important Indices which are issued by NITI Aayog

 Composite Water Management Index
 District Hospital Index
 Export Preparedness Index
 Global Innovation Index
 India Innovation Index
 Multidimensional Index
 School Education Quality Index
 SDG India Index
 State Energy Index
 State Health Index

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