What is economic planning?
Economic planning as a technique of achieving certain
self-defined and predetermined goals within a given period of time has been
very popular amongst the policy makers. Planning is a sort of conceiving,
initiating, regulating and controlling economic activity by the State according
to set priorities with a view to achieving well defined objectives within a
given time span. Planning is a sort of making of major economic decisions on
the basis of a comprehensive survey of the economic system as a whole.
In his book ‘Problems of Economic Planning’, E. F. M. Dublin
has defined economic planning as follows: ‘To plan is to act with a purpose to
choose and choice is the essence of economic planning.’
In the words of Dickinson, ‘Economic
planning is the making of major economic decisions of a determinate authority
on the basis of comprehensive survey of the economy as a whole.’
The planning commission of India is of the opinion that
planning is essentially a way of organizing and utilizing resources to get
maximum advantage in terms of defined social ends. The two main constituents of
the concept of planning are:
(a) system of ends to be pursued and b) knowledge as to
available resources and their optimum allocation to achieve these ends. The
availability or resources conditions the ends to be efficiently achieved.
Thus, we can identify the following characteristic feature
of economic planning:
(i) formation of objectives or goals;
(ii) fixing targets to be achieved and priorities of
productions for each sector of the economy;
(iii) mobilization of the financial and other resources
required for the execution of the plan;
(iv) creation of the necessary organization or agency for
the execution of the plan;
(v) creating assessment machinery for assessing the progress
made;
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