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Economic planning involves state intervention to regulate economic activities with the aim of achieving socio-economic justice and defined objectives. Key characteristics include a central authority, comprehensive resource utilization, and a democratic approach, while objectives focus on development, resource optimization, and reducing inequality. However, arguments against economic planning highlight issues such as inefficiency, loss of freedom, and challenges in coordination and implementation.

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22 views4 pages

Untitled Document

Economic planning involves state intervention to regulate economic activities with the aim of achieving socio-economic justice and defined objectives. Key characteristics include a central authority, comprehensive resource utilization, and a democratic approach, while objectives focus on development, resource optimization, and reducing inequality. However, arguments against economic planning highlight issues such as inefficiency, loss of freedom, and challenges in coordination and implementation.

Uploaded by

sujalsingh7755
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PLANNING

It is defined as conceiving, imitating, regulating and controlling


economic activity by the state according to set priority with a view
to achieve well defined objectives within a year.

It consists of state intervention to control and regulate economic


values so as to achieve the goals of socio-economic justice in an
economy.

According to Prof. Dickinson- Economic planning is the


making of major economic decisions by a determinate authority
on the basis of a comprehensive survey of the economy as whole.

"Such Decisions include what and how much to produce, how,


when and where. It is to be produced and to whom it is to be
allocated."

Characteristics and Features of Economic Planning

1. Definite aims and objectives.

2. Central planning authority .

3. Comprehensive planning .

4. Use of all available resources.

5. Scope of economic planning .

6. It should have a definite time period.

7. It should be democratic in nature.


8. There should be proper coordination among various
institutions/departments.

9. There should be proper balance in the plan so that the set


objectives can be achieved .

10. There should be uniform direction related to guideline and


implementation of economic planning.

Objectives of Economic Planning

1. Rapid economic development.

(a) To increase employment opportunities.

(b) To decrease poverty .

2. Optimum utilization of resources – natural, human and


financial.

3. Reduction in-in-equality.

4. Improvement in income and wealth.

5. Promotion of infrastructural activities.

6. To increase administrative efficiency.

7. To increase the rate of capital formation.

8. To increase the rate of investment .

9. To increase savings .

10. To increase national income.


11. To increase per capita income.

12. To increase the growth rate of productivity of agriculture .

13. To increase the growth rate of industries.

14. To increase the growth rate of the service sector.

15. To promote internal and international trade.

16. To ensure economic security.

17. To ensure social security.

18. To promote research and development facilities.

19. To control population growth rate.

20. To reduce regional disparities .

21. To decrease sectoral imbalance.

22. To improve quality of life.

23. To increase per capita income.

24. To make the economy self-sufficient & self-reliant.

25. To remove market imperfections.

26. To adopt new technology.

Arguments Against Economic Planning

1. In efficient administration and performance.


2. Unscientific attitude and intuition.

3. Planning may lead to choues in production.

4. Loss of economic freedom.

5. It is not easy to formulate a suitable plan.

6. Lack of coordination between various institutions and


departments.

7. Lack of strong and stable government.

8. Uncertainty, competition.

9. Financial Scamp .

10. Lack of effective implementation.

11. Less opportunities of development .

12. Influence of external factors.

13. Lack of control.

14. Lack of political will.

15. Fight between central and state governments.

16. State dictatorship.

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