Which of the following correctly describes the nature of NITI Aayog?

Explanation

NITI Aayog is an extra-constitutional body established by a Cabinet resolution. The official NITI Aayog page states that it was formed through a resolution of the Union Cabinet on 1 January 2015. That mode of creation is the key: it did not originate from a constitutional article or from an Act of Parliament, so it is treated as non-statutory and outside the Constitution. Its role is policy-oriented rather than fund-allocating. In contrast with the erstwhile Planning Commission, NITI Aayog functions as a think tank and does not have the Planning Commission's power to allocate funds to states.

Why the other options are wrong

• (A) A statutory body must be created by an Act of Parliament, whereas NITI Aayog was formed by a Union Cabinet resolution.
• (B) Article 280 relates to the Finance Commission, not to the creation or status of NITI Aayog.
• (D) Article 263 concerns the Inter-State Council, while NITI Aayog was not created by a Presidential Order under that article.

Concept

Public institutions are classified as constitutional, statutory or extra-constitutional bodies according to the legal source of their authority. RAS governance questions often turn on whether an institution derives authority from the Constitution, an Act of Parliament or an executive decision.

Source

• NITI Aayog, India - Meetings Of Governing Council

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