New Delhi (17.09.2023): Indianmandarins had reported first on 14 September that the Prime Minister's Economic Advisory Council may be revived and the Govt may announce the details shortly. Two theories are floating around in the official corridors to explain the revival idea. One says that it's being done to accommodate Bibek Debroy who had recently resigned from the Niti Aayog. The second theory, which contradicts the first, says that the revival idea is triggered by the necessity to get objective views on economic policies and planning as the government is being seen weak on the management of the economy.
It may be noted that the Economic Advisory Council to the Prime Minister (PMEAC) is a non-constitutional, non-permanent and independent body constituted by an executive order to aid and advise the Prime Minister. It advises the Prime Minister on a whole host of economic issues like inflation, macro and microeconomic issues, industrialization, urbanization, etc.
The PMEAC has been constituted several times since Independence. The previous Prime Minister's Economic Advisory Council (PMEAC) Chairman Chakravarthi Rangarajan resigned on 19 May 2014. He sent in his resignation to Prime Minister Manmohan Singh. He resigned following the defeat of the Congress-led UPA in the general elections 2014. Since the term of the PMEAC was parallel to that of the Prime Minister, hence with the resignation of the PM Manmohan Singh on 17 May 2014, the PMEAC also needed to resign. The PMEAC headed by C Rangarajan had Saumitra Chaudhuri, V.S. Vyas, Pulin B. Nayak and Dilip M. Nachane as members.
Before this, PMEAC which was constituted on 29 December 2004, headed by Suresh Tendulkar which resigned upon the completion of the then Union government's term on 21 May 2009.
Normally, the terms of reference of the PMEAC are as follows:
Analyzing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon;
Addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister. This could be either be suo-moto or on a reference from the Prime Minister or anyone else;
Submitting periodic reports to the Prime Minister on macroeconomic developments and issues with implications for economic policy;
Attending to any other task as may be desired by the Prime Minister from time to time.
The primary role of the PMEAC is to give a neutral viewpoint on economic policy matters that are referred to it by the Prime Minister. Additionally, it prepares a monthly report of economic developments that need to be highlighted to the PM. For this purpose, it closely monitors national and international economic developments and trends and develops appropriate policy responses for the PM. It publishes reports on the annual Economic Outlook and Review of the Economy
PMEAC being revived: reading between the lines
By IndianMandarins - 2017-09-19 11:48:04
New Delhi (17.09.2023): Indianmandarins had reported first on 14 September that the Prime Minister's Economic Advisory Council may be revived and the Govt may announce the details shortly. Two theories are floating around in the official corridors to explain the revival idea. One says that it's being done to accommodate Bibek Debroy who had recently resigned from the Niti Aayog. The second theory, which contradicts the first, says that the revival idea is triggered by the necessity to get objective views on economic policies and planning as the government is being seen weak on the management of the economy.
It may be noted that the Economic Advisory Council to the Prime Minister (PMEAC) is a non-constitutional, non-permanent and independent body constituted by an executive order to aid and advise the Prime Minister. It advises the Prime Minister on a whole host of economic issues like inflation, macro and microeconomic issues, industrialization, urbanization, etc.
The PMEAC has been constituted several times since Independence. The previous Prime Minister's Economic Advisory Council (PMEAC) Chairman Chakravarthi Rangarajan resigned on 19 May 2014. He sent in his resignation to Prime Minister Manmohan Singh. He resigned following the defeat of the Congress-led UPA in the general elections 2014. Since the term of the PMEAC was parallel to that of the Prime Minister, hence with the resignation of the PM Manmohan Singh on 17 May 2014, the PMEAC also needed to resign. The PMEAC headed by C Rangarajan had Saumitra Chaudhuri, V.S. Vyas, Pulin B. Nayak and Dilip M. Nachane as members.
Before this, PMEAC which was constituted on 29 December 2004, headed by Suresh Tendulkar which resigned upon the completion of the then Union government's term on 21 May 2009.
Normally, the terms of reference of the PMEAC are as follows:
Analyzing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon;
Addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister. This could be either be suo-moto or on a reference from the Prime Minister or anyone else;
Submitting periodic reports to the Prime Minister on macroeconomic developments and issues with implications for economic policy;
Attending to any other task as may be desired by the Prime Minister from time to time.
The primary role of the PMEAC is to give a neutral viewpoint on economic policy matters that are referred to it by the Prime Minister. Additionally, it prepares a monthly report of economic developments that need to be highlighted to the PM. For this purpose, it closely monitors national and international economic developments and trends and develops appropriate policy responses for the PM. It publishes reports on the annual Economic Outlook and Review of the Economy
