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CSEET · Economic and Business Environment · Key Government Institutions

Which statement about the powers of NITI Aayog is correct?

NITI Aayog was established by an executive Cabinet resolution, not by the Constitution or an Act of Parliament. It functions as an advisory think tank, so its recommendations are not binding and it has no power to sanction funds or regulate prices.

  1. AIt is a statutory body created by an Act of Parliament with power to sanction plan outlays
  2. BIt is a constitutional body whose recommendations bind the Union and States
  3. CIt was set up by an executive resolution of the Union Cabinet and acts mainly in an advisory capacityCorrect
  4. DIt is a regulatory body that sets prices for public sector enterprises

Explanation

NITI Aayog was created through a Cabinet resolution in 2015; it is neither constitutional nor statutory. Its role is advisory, so recommendations are not binding and it does not sanction funds or regulate prices. The options describing statutory, constitutional or regulatory status are therefore wrong.

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