 "New Delhi: Prime Minister Narendra Modi chairs the first meeting of his new Cabinet, in New Delhi, Monday, June 10, 2024. BJP MP-elects Rajnath Singh and Amit Shah are also seen. (PTI Photo)(PTI06_10_2024_000361A)")
The first meeting of the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) since the formation of the new government following the 2024 Lok Sabha elections is scheduled for tomorrow, June 19, at 5 pm in the national capital. The meeting, chaired by the Prime Minister, is expected to address major economic policies and initiatives, setting the stage for the government’s full Budget 2024-25 announcement poised for next month.
What is the CCEA?
The Cabinet Committee on Economic Affairs (CCEA) is one of the most significant committees within the Indian government. It plays a key role in finalising decisions related to infrastructure projects, industrial policies, and other key economic initiatives, ensuring they align with the government’s objectives and fiscal policies.
A CCEA meeting ahead of the Union Budget is crucial for discussing and approving significant economic measures. These discussions will influence budgetary allocations and the overall economic direction of the Modi government 3.0.
The CCEA is one of eight Cabinet committees.
What are the various Cabinet committees?
The Union Cabinet consists of several high-profile committees, each with specific functions. The Prime Minister sets up these committees, which include selected members of the Cabinet, and can modify their numbers and functions as necessary.
The eight Cabinet committees are:
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1. Appointments Committee of the Cabinet
2. Cabinet Committee on Economic Affairs
3. Cabinet Committee on Political Affairs
4. Cabinet Committee on Investment and Growth
5. Cabinet Committee on Security
6. Cabinet Committee on Parliamentary Affairs
7. Cabinet Committee on Employment & Skill Development
8. Cabinet Committee on Accommodation
All committees, except those on Accommodation and Parliamentary Affairs, where the Prime Minister is a member, are chaired by the Prime Minister.
The Prime Minister can change the number of committees or modify their function. For example, the Cabinet Committee on Investment and Growth was introduced by the Modi government in 2019.
The Manmohan Singh government had 12 Cabinet committees.
What does the CCEA do?
Established on July 14, 1990, the CCEA is responsible for high-level economic decision-making, including:
1. Economic policy formulation: Developing and implementing policies impacting agriculture, industry, infrastructure, and services.
2. Approval of large-scale projects: Ensuring alignment with national priorities.
3. Budget allocations: Distributing funds according to economic priorities.
4. Foreign investment oversight: Approving FDI proposals and international economic collaborations.
5. Policy reforms: Implementing reforms to improve economic efficiency and competitiveness.
6. Crisis management: Formulating measures to stabilise the economy during downturns.
Who are the members of the CCEA?
In 2021, the CCEA was chaired by Prime Minister Narendra Modi and included Minister of Defence Rajnath Singh, Minister of Home Affairs and Cooperation Amit Shah, Minister of Road Transport and Highways Nitin Jairam Gadkari, Minister of Finance and Corporate Affairs Nirmala Sitharaman, Minister of Agriculture and Farmers Welfare Narendra Singh Tomar, Minister of External Affairs S Jaishankar, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles Piyush Goyal, and Minister of Education and Skill Development and Entrepreneurship Dharmendra Pradhan.
Since all these ministers have retained their respective portfolios in Prime Minister Narendra Modi’s Union Cabinet in his third term, they are highly likely to remain members of the 2024 CCEA committee.
