Context:
Padma Shri awardee Bibek Debroy, who had been the Prime Minister’s Economic Advisory Council Chairman since 2017, passed away
Economic Advisory Council to the Prime Minister (EAC-PM):
- A non-constitutional, non-statutory, independent body
- Constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
- Advises the Prime Minister on economic issues like inflation, microfinance, and industrial output.
- NITI Aayog serves as the Nodal Agency for the EAC-PM (for administrative, logistic, planning and budgeting purposes)
- Composition –
- Chaired by a Chairperson and consists of eminent economists as members.
- No fixed definition on the exact number of members and staff of the PMEAC.
- Can be reconstituted time and again with different organizational structures headed by various economists who are of recognized international eminence.
- After the latest reconstitution, it now has a Chairperson, Member Secretary and 2 part-time members.
- Terms of Reference of EAC-PM –
- 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.
- These could be either suo-motu or on reference from the Prime Minister or anyone else.
- Attending to any other task as may be desired by the Prime Minister from time to time.
- Periodic Reports – Annual Economic Outlook, Review of the Economy.
Source: The Hindu
Previous Year Question
With reference to the Finance Commission of India, which of the following statements is correct?
[UPSC Civil Service Exam – 2011 Prelims]
(a) It encourages the inflow of foreign capital for infrastructure development
(b) It facilitates the proper distribution of finances among the Public Sector Undertakings
(c) It ensures transparency in financial administration
(d) None of the statements (a), (b) and (c) given above is correct in this context
Answer: (d)