Professional Documents
Culture Documents
SIYAPMKASAM
GENERALSTUqIES
FIVE-YEAR PLANS
Thgugh the Ptannirlg Commission itself came into being in 1950, the necessity for planning Y?","dYY!{ in_lndia
"ln f gs4, Shri M. Vbvesvarayya, a renownd Engineer from Kamataka published a book entiUed
much before tioepenOence.
"planned Econohy for India-. He suggested 1g-year ilin tor the economb development of the Country In.1938, Indian
National Congress under Pand( .lawal'tiAa Nehru formed a 'National Phnning Committee'- Recommendations of-the
Comrhittee wJre not implemented because of ll World War. ln 1941,'a Commitee was appointed under theChairmanship of
Mudaliar for preparing a plan for recon$ruction of post-rirar e@nomy of the Country. ln 1944, dght
Shri Ramasamy'Bombay
lndustialists of presenied a ptJn catteO 'The Bombay Plan'. Thb was also not implemented. In 1944, Shd Sriman
Narayan, a Gandhian piepared a plan called tGandhian Ptan'. Mr.M.N. Rao, Chairman of post-war Reconstruction Committee
of tniian.traAe Union, iirtrooucei a ,people'q Plan'in 1945. In 1950, Shri.laiprakash Narayan published a $an called
.Sarvodaya Plan'. The Govt did not aciept the entire plan and adopted only a few parts
-of
it. lt was hourever, after
lndependence that the Government of India set up a Planning Commis.sbn on 15m March, 1950 to prepare a plan for the
'mosf effiective and balanced utilisation oi tre County's resources'.
METHOO OF PLAN FORMULATION
About 2-3 years before the commencement'of the plan, discussions on the. plan and targets stTrt Planning
Commission collects data on National Product, Consrmption, Resources, lnrrestment and Savings for the plan and prepares
micro and macro plans, keeping in view their alkrcation arrangements.
These details are senf to National Development Counci(NDC) a non-statutory body which was constituted in 1952, to
ensure cooperation between the States and the Planning Commission for economic planning. After consideration, NDC sends
it back to Planhing Commbsion, with or without amendmenb. Based on his, the Central and State Governments prepare their
PROJECTS. Planning Cornmi.ssion obtains suggestions from eryerts in rarious sectors. Thereafter, it prepares the Draft
Memorandum wiffr policies and details. This Draft Memorandum is sent to the Unicn Gabinet for discussion. This is sent to all
State Governments and Union Ministries. Thereafter lt is published. Thb published format alongwith reactions and suggestions
of the experb is again sent to the Union Cabinet and NDC. The approved format b sent to Lok Sabha br dis;anssion. After
ratification from the Parliament, it is implemented by the Govemment.
PLANNING COMMISSION
Obiectives:
1. To infiate 'a proc€ss of development which will raise living standards and open out to the people new opportunities for
a richerand more varied life'.
2. To stabilise the growth of population over a reasonable period;
3. To ensure that the economy could, after a period of 10 years or so, reduce substantially the assislance from abroad.
Functircns:
1. Assessment of the material, capital and human resour@s of the country, including technical pesonnel, and
formuhtion of proposals for augmenting such of these resources as are found to be deficient
2. Formulation of Plans for the most effective and balanced utilisation of the country's resources.
3. Definition of stages in wftich the Plan should be carried out or a determinaton of priorities and allocation of resources
forcomf,etircn of each stage.
4. Determinaton of the nafure of the machinery necessary for the implementation of the Plan in all its aspecb.
5. Appraisal from time to time of the progress achieved in the execution of each stage of the Plan.
6. Public cooperation in national development.
7. Perspective planning.
The Planning Commission plays the role of an advisory body. lt is concemed broadly with technical que$ions relating
to planning and the planning organisation itself. The policy and details of specific schemes included in the Plan are now dealt
with by the Central Administative Ministries and the State Governments. The Prime Minister is the Chairman of the Planning
Commbgion. The Commission has a Deputy Chairman and six full time members. At tirnes, the Deputy Chairman b alsd fte
Minister of Planning assisted by a Minister of State for Planning. The full time Secretary coordinates its activities. For a
balanced view of the problems, the Commission draurs in the services of experb and representatives of different interest-
groups through formal and informal consuftative groups - Advisory Qommittees and Programme Advisors. Besides, there is a
Programme Evaluation Organisation attached to Planning Commission for evaluation of the progress of programmes included
in the Plans.
The failure of third five-year plan, due to the reasons explained above, made the Government to revierv the
situation
and it was decided to declare the period (1 .4.66 to 31 .3.69) as 'Plan Holidaf' and to have
Annual plans for the n€'d three
years to stabilise and re'start. The cumulative effect of the war, fall
in industrial produclion, successive failure of monsq)n .
followed by draught resufting in the heavy import of foodgrains from.abroad, etc. w'as the devaluation
of thj rrp". on 6S.Oo.
This caused further increase in pdces. I't rurtrer resufred in import of manufactured goods. More
emphasis'was given on
continuing the projects which were hatted in the lll plan period.
Despite the fact that there was another Orougnt during 66€7, these plans contributed to tre stability in prices and
brought about improvement in the balance of payrnent situation.
FOURTH F|VE-YEAR PLAN [1969_19741
The major objectives were (i) Grow with Stability; (ii) Achievehent of setf reliance and (iii) Garibi hatao(Removal of
Poverty) Broader aimswere :
i. Raising agricultural produotion especially food production-
ii. Economic stability; especially Food grain prices and general price level.
iii. Self reliance.
iv. lmprovement in the standard of living of weaker sections.
But the result showed the level of foodgrain produc{ion fell and it was a total failure in the case of Jute, Coton, Fibre,
Pulses. Tjrq Odces increased to a great exten(7b%).
Reason: Failure of monsoon was the reason ior tre fall in agricultural production. lndustrial licensing policy was stated to tre
the reason for tfie dismal performance in industrial front.
Results:
. lncrease in agdcuttural production was s(loificant Performance of the industrial sector was not saiigfactory. As a
result of antFpoverty progrilmmes fike IRDP, NREF, RLEGP, eb., the proportbn of the people living bebw poverty line did
decrease. In short, the Sixth P{an was a succ€ss.
GDP grorvlfr has improved making India one of the fastest growing developing countties. Poverty has dedined b
26.10/o.Population growth has decelerated and for the first time in four decades, it is below ZYo. Ll\eacy levels have increased.
Softryare services, eritertainment and lT enabled services have emerged as new sources of strength. On the other side,
ec$nomy is currenty witnessing a slora*Com. Emfloyment generation was less. Infant mortality rate has stagnabd at72 per
1000.
ELEVENTH FTVE YEAR PLANS ]Z)O7€O12I
The main areas @vered, being Income & Pove@, Education, Heafth, Women & Children, Infrastucture, Environment.
The 11h Five Year Plan seeks to step up econbmic grow{ir rate to 9olo. The other salbnt features of the draft l1h Ptan are; The
Plan document has envbaged a savings rate of 34.8 %. The Inraestrnent rate has been proposed to be raised to $.7 percent
lmportant targets include reducing poverty by 10% points, generating seven crore nav employnent opportunities and ensuring
ebctricity connection to all vi$ages. The mapr thrust of the Plan will be on social sector, induding agricut'fure and rural
education during 1t* ptan'Morel;ild;#i;n
ouflav of the 11h Plan(bcittr in"ruJing
more than double the.total outav
infrastructur"
d;';;
,,
"*o, "#;;ffi j;;fi ;;J;' ::::: #::: :
in"ruoing inig;ti"",'i,lrp"s water and sanvage.The
and state inJroing-fr"i, eseg-nu"-f;;;' total
at Rs.36442i8 crore, which is
December 2007' The oqcrareo oo;hh"itml
iriod'-pr"n The Narionaid;"i"prid;";il [i?"rrv approved rhe pran on 1e
Maj<rrtargets of Xfth phn are: eeventiipan-i"'llr1""L,
-' s'v qrEvcrrur rrarr ts: -Fagt and More Incrusive Grorhrtr
.. To achieve GDp growth 9olo perannum
. I o Increase agricultural growth rate to 4% per
. annum
To increase indusfial gFffi rate to
t0y"*d manufacturi ngto 12l7opa
' To reduce poverty or.agr:poins
to g"nerate 70 miilion e+nproyment opportjnities.
'. To reduce dropout of chirdren from"no aeme-narv
To increase national li.teracy rate to g5%
v''|rvv'e
--!' schoors to 20% u!
by 4w'tz
2012
r To ensure at least 33olo ;f atl direct andindifegt
. uagcr.aries of govt. schenies are women and girls.
To ensure electricity connection to all villages
an{ BpL households b}i 2OOg
' ' To provide allwheather roao connectlvttv
ti'ar[riuit"tion" *nn p"p"r"tion of above 1000 (500 in hitty
To connect every vitage by telephone areas) by 2009.
' uv zoog ano prouiJ, uioi-t'no connectivity
to a, viltages by za12
.'
To increase forest cove r by. 5%o poins
to attain wHo standarJs of air quality in all major
To increase enerov efficiency by2}%poine "no Oy cities by 201 1 -12.
ZO1Z.
The size of the totJ',publd;at"iil;Ef"i*nsr"t" together)
has been projected to be Rs.36,44,718 crores at 2006{7
prices.
Besides highlighting the need to urgenty
address conuption in ail spheres, it expressed
ospensing justice'. conc€m over the "not'rious delays in
.' clf
To reduce ernission intensrty cf the in line with the target ot 2}-2lreduction by 2a2cover
Releing agriculture ouput to 4 per cent for the 2005 levels.
. tuil plan.
Manufacturing sector grovth to 10 per cent for the
full plan.
' Target of adding over 88,000 fvlwof power generalion
eapacity rn the i2sr
fueyear plan.
In a rederar *ro:lrl
unib but also among ofter economi" gs.int &
rike ours, *:ihi6{i!i5t;ffiX,lf*",]:3fl:a shared vision amons not onry rhe rederal
that tre erors oi arr l-ne become convergent
pdorities' with the change in the
roliot rire state, td'f;;;'oi'ptannin! ror tre oeveropment of towards
' _participants the n"tion"l
the country arso is
undergoing change, oarticuhrly since the of the economic refoims in 1gg1 in lndia. There has been a
debate about the 'relevan9e or ptannin!; in"omm"n""r"nt
tn" ir,anging context of economic liberalization. national
tn the neur context of tre-economiJ retorm",
tt evident
' "-rqi6*inJ;;il;';r"
There is reduction of rore oi Government since tne rTttt
FyFran 11992€7).
'lncreasing role for the maket and the consequent
increase in the role of the private sectoq
'Integration of Indian economy with the. global
economy as the import conbols and tarifis are being rglaxed
reduced; rupee.convertibility being broughi in ptrases; and
Foi i" Lring invited on riuerarierms and so on;
' will be confinSo to select bciauv'reLvani ano intrastru"trr"
fi:?';:""r"j""t"Tits given greater autonomy in
In the context
"r"j" "nd
:Tl fte planning model needs to be changed to achieve building of social
ation,
for human development; ".."it
-91 protection
ecobd regenerating environment and nafural resourc€s; protecting
infrastructure
seclions; and bringing about balanceo9fregionai'd the vulnerable
ro,nnn.
ror tne seltors ti-t" *ogv, communications, transport
suided ,"ilil!'13,i1,ffiffi:" and so on as private sector needs to be
finance, the plqnnins exercise continues to be retevan(
urnln.n,STn"o"3J,ji*;il:,f"t' he resourcea need b be shared,
as
It is further observed, lhat the liberalization process presenty
the need of planning ptT"T is.to even t pi""*"
is shorring treMs of bypassing the weaker states and
of growth so that regional economic imbalances do not resutt
In the era of olobalization where corporatn
" are not expecGoii pan beyond the grovfih of a particular unit,
safeguarding national'interests i" ttta oi pr",ining the role of
oy the state. ror eiample, being srbjected to varbus discriminative
pracuces by EU' USA and $
on, ne rniiian efofoers have to rlni'soptrisiicateJoadei
services and information and ouiloing uJGis"inins
trade
in tire vwo for which the legar
today.
po*"i u"&'piovioeo by the state. Thus, planning is relevant even
"r"
IVN ONGENERALSTTIDIES (1) 2013 BY V. SIVAPRAKASAM
P|anningCommissionhasre|eased,nonu*on"$!ffi2o03whichpresentspre-aSsessmentoftheprogreSS
of lndian Economy fior the nelt two decades. The salient points of the document are:
.. The erpected annual groudt rateby%)2O to be 9%
. Elimination of unemploymen( illiteracy & poverty by 2OX;
. Per capita income to get doubled by 2020;
. Cent per cent registration of children (age 6-14 yeds) in schools.
. 't .35 billion population ofthe country to have better livihg standard by 2420.
. Environment sifuation to remain as unbalanced as present
o \AIltr 20,6 annual Employment generaton rate,2o crores nevv employment opportunitibs to be created by 2A20;
. Present ernployment share in igriculature to come down from present 56Yo to 40o/o by ?fl21i
. UnorganiSed sectorto create more additional employment opportunities;
. Urlcan.population percentage to get increased from existing 25.5"/"to 40o/oi
. Water problem in metropolitan cities.to continue as such.
NATIONAL DEVELOP MENT COUNCIL
In addition to the Planning Commission, there is another machinery, called National Development Council, set up in
1952tor -
i. ensuring balanced and rapid development of the country
ii. strengthening and promotingtheeffortsand resources in supportof theplan,
iii. promoting cominon economic policies in critical areas-
The Prime Minister is the Chairman- All the Union Cabinet Ministers, all the Chief Ministers, the Lt Governors of
Union Tenitories, Chairman and Members of Planning Commission are members of the Council. The Secretary of the
Planning Commission is the Secretary of the National Development Council. Planning Commission provides administrative and
other support to the Council.
Functions:
1. To issue guidelines for Nalional plan.
2. To assess the requiremenb of resources for the plans.
3. To consider plan and reviewthe progress.
4. To suggest measures for securing aclive participating of people.
5. To consider the Central assistance to States.
PAIT9HAYAT| RA'
Panchayati Raj is an important feature of the lndian Political System which ensures the direct participation of people at
the grass root level. Recogn2ing this fact Article 40 in Part lV of the Constitution (Directive Principls of State Policies) of the
lndian Constitution enjoined that the State shall take steps to organize village Panchayats and endow them with such powerc
and authotity as may be necessary to enade them to function as units of setf Goyemment. Batwant Rai Mehta Commifree,
appointed by National Development Council in 1956 to suggest measures for the befter working of the Community
Development Programme and the National Extension Service. The Committee submitted its report in 1957 in which it
recommended:-
1. a three-tier structure consbting of the village at the bottom, district at the top and an intermediary structure in between;
?. genuine transfer of power and responsibrility to these institutiorrs;
3 adequate resources to all bodies to enable them to discharge their responsibilities;
4. that all social and economic development prograrhmes be canalized throqgh these agencies;
5. that a system be evolved b effect furffrer dissolution and dispersal of povrrer.
ln other wsrds,. it envisaged directy elected Panchayats for a village or group of villages, an executive body called
Panchayat Samiti for a block wtfr direcfly elected and co-optbd memberc anO an lCvisory Body called Zilla parishail at the
District level constituted indirectly - namely through Ex-officio members from lower tier anO otres, with the Dbtrict Collector as
Cahirman. Panchayati Raj Institutions, being units of local self-govemment, a State subject under the Constitution, the States
and the Union Tenitories are free to design their structurg, powers and functions, keeping in mind the locai situations.
Rajasthan introduced it with a thre+tier system of Panchayat firs(2nd Ocbber, 1959). This was followed by Andhra pradesh,
Bihar, Gujarat, Himachal Pradesh, Maharashtra, Punjab, Tamil Nadu, Uttai Pradesh and We$ Bengal. Gradually, the
Panchayati Raj system is being adopted by most states even through the system drffered in matters of ctetail.' The
recommendations of the Commiftee were approved by the National Development Council in January 1958 and thus set the
stage for the launching of Fanctrayati Raj in$itutions throughout the county.
O rganizatironal set+rp :
Gram Saba: lt is the general body, consisting of all the voters residing in the jurisdiction of Gram Panchayat which
Bxtends over one village or group of villages. Gram Saba is a statutory body in the States tike Andhra Pradestr, Assam, Bihar,
Gujarat, etc. lt is a non-statutory body in the States of ..1&K and Kamataka. Kerata and Tamil Nadu have no piovision'in their
acts for the consttution of Gram €aba. The Gram saba generally meets twice in a year.
Function: The Gram Saba is to consider the Annuat Statement of Accounts, to audit the accounts of the Panchayat
and to approve tax proposals for fufure years, to examine Administration Report of tre Gram Panchaya! to approve.the work
programme for ensuing year and ofrerspecific dwelopmental scheme.
Though the Gram Saba is to r,rlcrk as a wabh dog of Gram Panchayat which is an Executive Body, its functions have never
been satis{actory. Lack of pbtkity, unsuitable timing, apathy of lhe Sarpanch, inadequacy of -powers, illlteracy, lack of
secretarial assistance ar€ some causes for the malfunctbning this institution.
s
VNONGA'ERALSTUDIES (1) 2013 BY V. SIVAPRAKAMM
ANTYoDAYA ; The Got. of Rajasthan statted a scheme called Antyo( aya on o&2, 19T2. An{odaya
means ,.upto the
last man"' The aim was to. help. trre utterly poor in the state. The scherne imbibed - a)
allotment of land, b) provision of
employment p) old age pension, d) grant of ioan for purch*e of cadsand e) estadishment help for cottage
and small scale
industies_
WNONGENERALSIUDIES (D 2013BY V. SMAPRAKASAM