ECONOMIC PLANNING

Economic planning is to make decision with respect to the

use of resources.
Economic planning is a term used to describe the long term
plans of government to co-ordinate and develop the
economy.
Economic planning in India was started in 1950 is necessary
for economic development and economic growth.
 FEATURES OF ECONOMIC PLANNING
❑Specification of objectives.
❑Time target.
❑Scheme of action to be drawn up sufficiently in advance.
❑Internal balance or consistency of the plan.
❑Optimisation : attaining objectives in at most efficient
manner.
❑Process of coordination and centralised decision making.
 OBJECTIVES OF ECONOMIC PLANNING
➢Proper utilisation of national resources.
➢Increase employment.
➢Self sufficient.
➢Economic stability.
➢Social welfare and service.
➢Regional development.
➢Comprehensive development.
➢To reduce economic inequalities.
➢To increase standard of living
 NEED FOR ECONOMIC PLANNING
❖Mess poverty and low per capita income.
❖High rate of growth of population.
❖Industrial growth was negligible.
❖Low level of literacy.
❖Backward technology.
❖Traditional attitude.
❖Development of natural resources.
❖Social and economic problem created by partition of
loan try.
 ADVANTAGES

a. Creats potential to mobilise the economic resources

effectively and quickly.
b. Ability to execute salient massive projects , attain
significant social goals and create industrial resources
and power.
c. Over ride the self interest of every individual.
 TYPES OF ECONOMIC PLAN
oPhysical and Financial planning
oStructural and Functional planning
oCentralised and Decentralised planning
oRolling plans and Fixed planning
oDemocratic and Totalitarian planning
oDirection of inducement planning
oComprehensive of practical planning
oPermanent of emergency planning
oPerspective of short term planning
oFlexible of rigid planning
oRegional, National, International planning
oAnti-cyclical planning and Development planning
oSocialistic planning and Capitalist planning.
 PLANNING COMMISSION OF INDIA
The planning commission is an institution in the
government of India which formulates economic policies
and draft five year plan.
It was set up on 15 march ,1950 with prime minister
Jawaharlal Nehru as the chairman.
• The commission has a nominated Deputy Chairman,
who has rank of a Cabinet Minister.
• Montek Singh Ahluvaliya is currently the Deputy
Chairman of the Commission.
 FUNCTIONS OF PLANNING COMMISSION
▪To estimate the physical, capital, and human resources of
the county.
▪To prepare plan for making effective and balanced
utilisation of human resources.
▪To determine the various stages of planning.
▪To indicate those factors to the Govt which check the
economic development.
▪To advise the centre and state Govt on special matters
referred.
Thank you