10 Features of Economic Planning | Free Economic Blogs
Table of Contents
Features of Economic Planning
Meaning and Definition of Economic Planning
Economic planning is a time-bound program to achieve certain objectives with the help of available resources by the planning authority.
According to Dr. H. D. Dickinson: “”Economic planning is the making of major economic decisions such as what and how much to be produced how, when and where it is to be produced, to whom it is to be allocated by the conscious decision of the determinate authority, on the basis of a comprehensive survey of the economy as a whole”.
According to Prof. Seligman: “Planning is a conscious and deliberate choice of economic priorities by some public authority.”
- Microeconomic Definition | Historical Review of Microeconomics
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- Importance of Microeconomics
Features of Economic Planning
Economic planning has the following features
1) Central Planning Authority
Central Planning Authority in a country undertakes economic planning. In India, it was known as Planning Commission. It has been replaced by National Institution for Transforming India i.e. NITI Aayog since 2015.
2) A Survey
A comprehensive survey of the economy is undertaken regarding the availability and utilization of human and
natural resources.
3) Objectives
Economic planning is based on certain pre-determined objectives which are realistic and flexible.
4) Priorities and targets
Priorities are fixed according to the importance of each sector for accelerating economic development.
Target is the concrete step towards the attainment of objectives.
5) Mobilisation of Resources
The resources needed for planning are mobilized through various sources like taxation, domestic savings, deficit financing, public debt, external assistance etc.
6) Plan Period
The plan period varies as per needs. In countries like India, planning is generally for a period of five years.
7) Evaluation
Periodic assessment such as mid-term appraisal is done to incorporate necessary changes in priorities and targets of the plan.
8) Continuous Process
Economic planning is a continuous process. It aims at the economic development of the country.
9) Co-ordination
States of the country also undertake economic planning along with the center. Thus, coordination between the center and states is ensured.
10) Flexibility
Central Planning Authority maintains flexibility in its approach. This makes it possible to incorporate necessary
changes in the plan as per requirements during its implementation.
