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Which feature best reflects the idea of 'cooperative federalism' in the working of NITI Aayog?

Cooperative federalism in NITI Aayog is reflected in its Governing Council, which includes the Prime Minister, all Chief Ministers and Lieutenant Governors of Union Territories. This gives States a direct voice in national policy, unlike the earlier top-down fund-allocation approach.

  1. AIts Governing Council includes Chief Ministers of all States and Lieutenant Governors of Union TerritoriesCorrect
  2. BIt allocates annual plan funds to States based on a fixed formula
  3. CIt issues binding directions to State governments on budgets
  4. DIt audits the accounts of State governments

Explanation

The Governing Council brings together the Prime Minister, Chief Ministers and Lieutenant Governors/Administrators of UTs, enabling States' participation in policy-making. Fund allocation by formula was the earlier Planning Commission style and is not the NITI role. NITI gives advice and has no binding direction or audit powers; audit belongs to the CAG.

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