Question

Answer the following question:

Explain the features of Economic Planning

Answer 1

The following are the features of economic planning:

1. Central Planning Authority: In India, economic planning is undertaken by the Central Planning Authority. In India, it was known as Planning Commission. Since 2015, Planning Commission has been replaced by National Institution for Transforming India i.e. NITI Aayog
2. A survey: For economic planning, a comprehensive survey of the economy is undertaken. The survey includes getting information regarding the availability and utilization of human and natural resources.
3. Objectives:' Economic planning is based on certain pre-determined objectives. These objectives are realistic and flexible.
4. Priorities and targets: In economic planning, for accelerating economic development, the priorities are fixed according to the importance of each sector. Target is the concrete step towards the attainment of the pre-determined objectives.
5. Mobilization of resources: The resources needed for the implementation of plans are mobilized through various sources such as taxes, domestic savings, direct financing, public debt, external assistance, etc.
6. Plan period: Plan period varies as per the needs. In India, economic planning is generally for a period of five years.
7. Evaluation: Periodic assessments such as a mid-term appraisal of the plan is done. This helps to incorporate necessary changes in priorities and targets if needed.
8. Continuous process: Economic planning is a continuous process. It aims at the economic development of a country.
9. Co-ordination: In India, states also undertake economic planning along with the centre. Thus, in economic planning, coordination between the centre and states is ensured.
10. Flexibility: In India, the Central Planning Authority maintains flexibility in its approach. It allows us to incorporate necessary changes in the economic plans as per the requirements during its implementation.