Correct Option (b):
Statement 2 is correct. Economic and Social Planning is listed under Entry 20 of the Concurrent List in the Seventh Schedule of the Constitution of India. This arrangement enables both the Parliament and State Legislatures to enact laws on matters pertaining to economic and social planning, ensuring cooperative federalism in this domain.
Statement 3 is correct. Article 243G of the Constitution of India, inserted by the 73rd Amendment Act, mandates that the Legislature of a State may endow Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. This includes the preparation of plans for economic development and social justice, and the implementation of schemes for the same. This provision decentralizes planning to the grassroots level.
Incorrect Options:
Statement 1 is incorrect. The National Development Council (NDC) was an advisory body established in 1952. It was constituted to secure cooperation of states in the execution of the Five Year Plans. While it included members of the Planning Commission, it was not an organ of the Planning Commission itself. It functioned as a separate apex body for decision-making and deliberations on development matters. Therefore, options (a), (c), and (d) are incorrect as they include statement 1.