Transcript Economic planning

ECONOMIC PLANNING
Introduction: “planning is
deciding in advance what is
to be done. When a manager
plan, he project a course of
action for the future,
attempting to achieve a
consistent,co-ordinated
structure of operation aimed
at the desired result.”
NATURE , CONCEPTS AND
TYPES OF PLAN
Planning is universal and every business unit
has to plan its economic activity. Planning
lays down the mean to achieve objectives.
Planning is an intellectual process and
requires mental exercise.
Planning is always a continuous and
perpetual process and if circumstances
changes and modifications are regularly
done in the planned course of action on
account of changes in environment.
FEATURES OF PLANNING
Democratic : India being the largest
democratic country in the world has been
maintaining such a planning set up where
every basic issues related to its five year
plan is determined by a democratically
elected government.
Decentralised planning:
decentralised planning is a kind of
percolation of planning activities or process
from the centre to the sub-state
levels,district,sub-division,block and village
level.
 Existence
of central plan and state
plan :Central plan is under the exclusive
control of the planning commission and the
central government whereas the state plan is
under the exclusive control of state planning
board and state government which also
requires usual approval from the planning
commission.
 Public sector and private sector
plan: public sector investment and private sector
investment amount is separately fixed,which
comprises the total investment in each
plan.india,being a mixed economy,it is quite natural
that a separate investment outlay for public as well
as the private sector is being maintained in each
plan.
Periodic plan:this type of periodic
plan approach is quite suitable for realising
its definite targets.the system of annual
plan has provided the facility for making
necessary modification in the plan
outlay,allocation and targets.
Basic objectives: the major
objectives of economic planning in India
mostly consists of economic
growth,economic inequalities,full
employment,modernisation,redressing the
imbalance in the economic.
 Unchanging
priorties:India are
determining its priorities considering the
needs of the country.its is being observed
that India giving too much priorities the
development industry,power and
agriculture with minor modification.
 Balanced
regional development:
development of backward regions is one of
the important objective of India planning.
 Planning on basic issues: another
important feature of Indian planning is that it
has adopted the system of perspective planning
on some basic issues of the country.
 Implementation
and
eveluation:programme implementation
machinery includes various government
department which are usually involved for the
implementation of the plan.there is evaluation
machinery which usually conduct pre-project
evaluation of every planning project of the
country.
OBJECTIVES OF PLANNING
 Economic
growth: as the economy of
the country was suffering from acute
poverty, thus by attaining a higher rate of
economic growth eradication of poverty is
possible and the standard of living of our
people can be improved.
 Economic
equality and justice:
reduction of economic inequalities and
eradication of poverty are the second group
of objective.
Full
employment:the generation
of more employment opportunities
was considered as an objective of
both the 3rd and 4th plan of our
country.
Economic
self-reliance:when
the plan aimed at elimination of
the import of food grains under
PL480.
 Modernisation
of various
sector:our country was the modernisation
of various sector and more specially the
modernisation of agricultural and
industrial sectors.
 Redressing
imbalances in
economy: regional development mean
economic development of all the regions by
exploiting various natural and human
resources and by increasing their per
capita income and living standard.
KINDS OF PLANNING
 Basic
plan:the entire planning activity is
geared into action through the formulation of
objectives and strategies.
 Standing
planning:serves as a guide line
to managerial action.it include policies and
procedures which have application only in
repetitive action.
 Master
plan:the complete course of action
along with timing and strategy consideration.
STEPS IN PLANNING
 Objectives: objectives are the ends towards
which the activities of an enterprise are
directed. Objectives are the action
commitments through which is received
universal attention of the planning.
 Targets
production,
consumption and distribution:
timing is an essential consideration in
economic planning. The starting and finishing
time are fixed for each piece of work so as to
indicate a good production.
 Securing
participation: the
participation of the subordinates has been
found to be of extreme importance.
participation improves the quality of
planning through the knowledge facts.
 The
use of strategy:startegy involves
as to how available resources will be used
to achieve objectives. it also mean a
particular kind of policy.
TECHNIQUES OF PLANNING
 Democratic
planning: this is also
known as planning by inducement.
democratic plan need not be a
comprehensive plan. under democratic
planning technique, objective may be
achieved by techniques of persuasion and
not by order, command and threat. India
has a very complex mixed economic system,
here democratic plan plays a vital role. The
government authority interferes with the
working of the price system only to promote
social welfare.
Planning by direction: it involves the
system of orders, commands which shall be
observed. here, determine policies for the group
without consulting them and dose not give
detailed information about future plan but
simply tell the group what immediate steps the
member must take. production targets for every
industry is fixed. this technique of planning can
also be positive because the production unit may
use his power to disperse rewards to group. this
may be effective in getting higher productivity
in many situations and developing effective
human relationship.
PLANNING COMMISSION
The planning commission of India was set up for
the first time in march 1950 with pt. Jawaharlal
Nehru as its chairman.
 The commission is composed of 8 member
 prime minister
 Four full time members
 Minister of planning
 Minister of finance
 Minister of defence
FUNCTION OF PLANNING
COMMISSION
Making real assessment of various
resources
 Formulation of a plan
 Determining plan priorities
 Economic growth
 Determining plan machinery at each stage
of planning process
 Finally making ancillary recommendations
as and when necessary.

NATIONAL DEVELOPMENT COUNCIL
It is working as the highest national forum for
economic planning in India since 6th august
1952.it representatives of both the central and
state government sit together to finally approve
all important decision relating to planning.
 Members are:
 Prime minister of India
 All state chief minister
 Members of planning commission.
FUNCTION OF NDC
To make periodical review of the national plan
at different time.
 To consider important question related to social
and economic policy affecting national
development.
 It also taking a final decision regarding
allocation of central assistance for planning
among different states.
 NDC approves the draft plan prepared by
planning commission of our country.

THANKING YOU
Submitted by: Chandan Verma
BBA II
734
Submitted to: Sarabjeet mam