Economics • Indian EconomyHard
Analyze the structural mandate of 'NITI Aayog' as the premier policy think tank of the Government of India. Which of the following initiatives highlights its cooperative federalism approach?
A. Allocating discretionary central plan grants directly to state treasuries without parliamentary approval
B. Publishing thematic composite indices like the Health Index, SDG India Index, and Export Preparedness Index to foster competitive federalism among states✓ Correct Answer
C. Issuing binding directives to state electricity boards regarding tariff revisions
D. Auditing state government departmental expenditures for statutory compliance
💡 Solution & Explanation
NITI Aayog fosters competitive and cooperative federalism by releasing regular performance indices that rank states across health, water management, innovation, and sustainable development goals. Discretionary grants are handled by central ministries and finance commission awards. Binding tariff directives fall under electricity regulatory commissions, while expenditure audits are conducted by the Comptroller and Auditor General. Established in 2015 to replace the Planning Commission, NITI Aayog functions as an advisory think tank rather than a resource allocator.
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