NEPALI MILITARY ACADEMY

KHARIPATI,BHAKTAPUR
 STRUCTURE AND IMPOTANCE OF PLANNING
COMMISION OF NEPAL

INTRODUCTION

The National Development Council of the Nepalese government issues

directions to the National Planning Commission (NPC), an advisory body
responsible for developing the nation's development plans and policies.It
serves as the highest advisory body to the Nepalese government, assisting
in the creation of periodic plans, development programs, and a national
vision. The Right Honorable Prime Minister is in charge of it. The NPC
determines funding sources, evaluates resource needs, and allots funds for
socioeconomic development. It acts as the main organization in charge of
keeping an eye on and assessing development plans, policies, and
initiatives. Additionally, the NPC acts as a hub for the intellectual
interchange of fresh concepts and ideas for development from academics,
businesspeople, civic society, and development partners.

HISTORY

In Nepal, the Planning Commission was initially established in 1956. It

was renamed shortly after in compliance with the 1957 Yojana Mandal
Act. Under the then-king, the National Planning Council was established
in 1961 when the partyless Panchayat system was implemented. The
council was disbanded in 1963, and the Chairman of the Council of
Ministers oversaw the creation of a new planning organization with the
same name. The Ministry of Economic Affairs was renamed the Ministry
of Economic Planning, and all of the ministers were elevated to ex-officio
positions on the council.

All of the Ministry of Economic Planning's previous responsibilities for

the development budget and international aid were transferred to the
Ministry of Finance in 1968. The Prime Minister chaired the National
Planning Commission (NPC), which was formerly known as the National
Planning Council. The NPC was reorganized as a consequence of a 1972
study on the duties and responsibilities of the central planning body.

The NPC was once again reorganized by the newly elected government in
1990 following the historic restoration of multiparty democracy. This
time, the Prime Minister served as chair, along with a full-time vice-
chairman, five Members, and a Member-Secretary. The Executive Order
that the Cabinet issued in 2010 serves as a foundation for the NPC's
present structure and operations.

STRUCTURE

At present, the NPC has one full-time Vice-Chairman, six members, and
one Member-Secretary who also heads a fully staffed secretariat. The
Chief-Secretary and the Finance Secretary are ex-officio members of the
Commission. The national statistical council is chaired by vice-Chairman
of National Planning Commission.

The Commission consists of seven functional divisions each headed by a

Joint-Secretary: i) Economic Management; ii) Infrastructure and
Production; iii) Monitoring and Evaluation; iv) Research and Inter-
Governmental Coordination v) Sustainable Development and
International Relation, vi) Social Development and vii) Administration.
Each division is further divided into Sections headed by an Under-
Secretary.

IMPORTANCE

In addition to working as a national planning and programming body, the

NPC has emerged as a leader and principle advisor in the economic
development and economic affairs of the country. Almost all economic
development and economic policies and programmes come into force
either at the initiative of the Commission or on its advice or
recommendations. NPC has emerged as a key coordinator in the
management of economic development and general economic affairs of
the country. NPC is also performing the role of an active and positive
facilitator in the implementation of economic developmental policies and
programmes. It has often assisted government organizations in solving
challenges/problems faced in economic policy and programme
implementation. The NPC has played the role of a pioneer in policy
reforms. It has successfully pioneered the formulation and
implementation of economic liberalization and other reform programmes.
 The Commission is working as the central level institution for
monitoring and evaluation of economic development of the country.The
Commission is a platform for exchange, dissemination, discussion and
consultation in respect to economic affairs and development of the
country. The meetings held in the offices of Vice-chairman and members
of the Commission are important inputs for the development of the
country.
The Commission also serves as an institution involved in analysis and
finding solution to the problems of private sector in the country. The
Policy Dialogue Committee under NPC is an effective forum for co-
ordination of policy implementation and to address the various problems
faced by the private sector