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CSEET · Economic and Business Environment · Key Government Institutions

Which statement best describes the approach of NITI Aayog compared with the Planning Commission?

NITI Aayog follows a bottom-up approach and fosters cooperative federalism, treating states as partners in policy making. It does not draw up binding Five-Year Plans or allocate funds as the Planning Commission did.

  1. AIt prepares binding Five-Year Plans and allocates funds to states
  2. BIt follows a bottom-up approach and fosters cooperative federalism with states as partnersCorrect
  3. CIt regulates the securities market and protects investors
  4. DIt audits the accounts of the Union and state governments

Explanation

NITI Aayog is built on a bottom-up approach with states as active partners, promoting cooperative federalism. Binding plans and fund allocation reflected the older top-down Planning Commission model. Securities regulation is SEBI's role and audit is the CAG's.

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