The Planning Commission in India was set up on March 1950 to promote a rapid rise in the standard of living of the

people by utilizing the resources of the country, increasing production and offering employment opportunities to all.
The Planning Commission has the responsibility for formulating plans as to how the resources can be used in the
most effective way. 

The Planning Commission has to make periodic assessment of all resources in the country, boost up insufficient
resources and formulate plans for the most efficient and judicious utilization of resources.

Jawaharlal Nehru was the first chairman of the Planning Commission.

Structure of the Planning Commission: 

The Prime minister is the chairman of the Planning Commission. The Deputy Chairman and the full time members
give advice and guidance for the formulation of Five Year Plan, Annual Plans, State Plans, Projects and Schemes
etc. Currently the structure of the planning commission is like this: 

1. Chairman - Dr. Manmohan Singh

2. Deputy Chairman- Shri Montek Singh Ahluwalia
3 Minister of State- Shri M.V. Rajshekharan
4. Members - Dr. Kirit Parikh,Prof. Abhijit Sen ,Dr. V.L. Chopra ,Dr. Bhalchandra Mungekar ,Dr.(Ms.) Syeda
Hameed ,Shri B.N. Yugandhar ,Shri Anwar-ul-Hoda, Shri B. K. Chaturvedi
5. Secretary- Dr. Subhas Pani

Functions of the Planning Commission India: 

Following are the functions of the Planning Commission of India:

 To make an assessment of the resources of the country and to see which resources are deficient.
 To formulate plans for the most effective and balanced utilization of country's resources.
 To indicate the factors which are hampering economic development.
 To determine the machinery, that would be necessary for the successful implementation of each stage of
plan.
 Periodical assessment of the progress of the plan.
 With the changing times, the Planning commission is preparing itself for long term vision for the future. The
commission is seeing to maximize the output with minimum resources.
 From being a centralized planning system, the Indian economy is slowly progressing towards indicative
planning wherein the Planning Commission has set the goal of constructing a long term strategic vision for
the future.
 It sets sectoral targets and provides the catalyst to the economy to grow in the right direction.
 The Planning Commission plays an integrative role in the development of a holistic approach to the
formulation of policies in critical areas of human and economic development.
.1.     What is the Finance Commission?
Ans.     The Finance Commission is constituted by the President under article 280 of the Constitution,
mainly to give its recommendations on distribution of tax revenues between the Union and the States
and amongst the States themselves. Two distinctive features of the Commission’s work involve
redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the
centre and the States respectively and equalization of all public services across the States.

Q.2      What are the functions of the Finance Commission?

Ans.     It is the duty of the Commission to make recommendations to the President as to—  

 the distribution between the Union and the States of the net proceeds of taxes which are to
be, or may be, divided between them and the allocation between the States of the respective
shares of such proceeds; 
 the principles which should govern the grants-in-aid of the revenues of the States out of the
Consolidated Fund of India;
 the measures needed to augment the Consolidated Fund of a State to supplement the
resources of the Panchayats in the State on the basis of the recommendations made by the
Finance Commission of the State;
 the measures needed to augment the Consolidated Fund of a State to supplement the
resources of the Municipalities in the State on the basis of the recommendations made by the
Finance Commission of the State;
 any other matter referred to the Commission by the President in the interests of sound
finance.

The Commission determines its procedure and have such powers in the performance of their functions
as Parliament may by law confer on them.

Q.3.     Who appoints the Finance Commission and what are the qualifications for Mem