Economic Planning

The planning watch

• The planning commission was set up in March 1950, by
Resolution of GOI, with the following functions
– To ensure the efficient utilization of scarce resources
– To formulate a plan for the most effective and balanced
utilization of the country’s resources
 Objectives of Planning
• Economic Growth
• Poverty Alleviation
• Employment generation
• Controlling Economic Inequalities
• Self Reliance
• Modernization
 National Development Council
• Major Functions:
– To review the entire situation of economy
– Constitutional Provisions
• Economic and Social Planning
• Promotion of cooperation on voluntary basis
• Set out the broad outline for the pattern of welfare
– To prescribe the guidelines for formulation of the National Plan
including the assessment of the resources for the plan
– To consider the National Plan as formulated by the PC
– To consider the important questions of social and economic
policy affecting the national development
– To review the working of the plan time to time and to
recommend such measures as necessary for achieving the aims
and targets set out in the National Plan
 National Planning Committee
• An extra constitutional and non statutory body
• An advisory body
• Coordination of the economic activities
• An autonomous body
• Consultation to state and central Govt
• Linked with the Union Cabinet
• Technical Body
• Executive Power
 India as a Mixed Economy
• The positive economic role of the state
• Co existence of public and private sector
• Combined features of public and private sectors
• The success of planning in the mixed economy depends on
– To what extent public sector able to pursue the social ly determined
goals?
– To what extent is the state able tp guide the private sector to follow the
socially determined goals?
– To what extent is the state is able to check the distortions in
investment decisions arising out of private sector interests going
against overall objectives of the economy?