PLAN FORMULATION AND IMPLEMENTATION

 PLAN FORMULATION AND IMPLEMENTATION

INTRODUCTION: 

             This is about Government policies and its framework, which moved Indian Economy for decades after post Independence. These policies addressed Economic inequalities, and making India Self reliant and reducing unemployment. The government made monetary policy, Fiscal Policy and other regulatory bodies for making it possible. Post Independence Policymakers had taken example from various other countries and moved towards the mixed kind of Economy.

• Planning definition and the need for planning
• Planning in independent India
• Objectives of economic policy
• Monetary and fiscal policies
• Five year plan

 

       

Planning definition 

        Planning is the achieve goal. Planning is a process of deciding the future courses of action to be taken in order to achieve a result. 

Need for planning 

           

  

Planning in independent India 

          Foundation of planning for India got laid much before independence when visionaries like mahatma Gandhi, Pandit Jawaharlal nehru, subhash Chandra Bose, dadabhai naoroji on the one hand on the other hands visionaries like jamsetji Tata and many growth of India.  

Objective of economic policy

1) Economic growth:

         The objective of achieving economic growth implies that the real national income and per capital income must growth every years at a targeted rat.  

         

2)Reduction of economic inequalities

            Economic inequalities are imbibed in an economy s system. How to remove inequalities remain a nmajor concern of any planning system and poverty alleviation with employment generation are the primary actions for which a plan creates a scope for example through introduction of various schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).

3) Achievement of employment for all

           Generating employment opportunities and for this plan creates provision for developing and diverting resources in the sectors and areas where large employment opportunities may be brought in along with matching or aligning the economy the economy with the global focus areas. Development of skills in accordance with the foreseen and generated employment opportunities by allocating resources towards human resource training and development.

4)Economic sell reliance

             A developing nation may cross its transition to be a developed nation if and only if it becomes self dependent at first in terms of basic amenities and then in all the major terms.

5)Addressing of the imbalances in the country 

      Identifying regional qualities and resources and channelizing those with the perspective of that region's development in accordance with national and global development has also to be a plan's major focus.

Fiscal policy 

          Fiscal policy is related to revenue generation and expenditure planning by a Government. The tool/instrument for operating the fiscal policy in Budget which is a plan specific to the levels of as much as it can be in terms of expressing Government Expenditure and Revenue along with the modes and intentions suggesting the direction of the economy. Union Budget is presented before the start of every financial year by the Finance Minister in Parliament. Fiscal policy related short point below.     

• Higher taxes
• Lower taxes
• Higher government spending
• Lower government spending
• No specific target
• Side effect on government budget 

 

Monetary policy 

        Monetary policy has an association with instruments and tools used and controlled by monetary authorities for example Central Bank of a country and Reserve Bank of India in the case of our country. Reserve Bank of India in association with other financial institutions and in consultation with the ministry of finance operates by bringing variation in the cost and availability of credit which has a triggering effect on the demand and supply of credit in the economy which further effects the nature and the level of economic activities such as production of goods and services on the one hand and aggregate demand for those goods and services on the other hand. Monetary policy related short point below.     

• Selling treasury securities
• Buying treasury securities
• Increasing the reserve ratio
• Increasing the discount rate
• Target inflation
• Side effect on exchange rate and housing market 

Five years plan

 five years plan(1951-1956)

         The  1st  years  plan  was  presented  by Jawaharlal  Nehru  who was  the  prime  minister  during  that  period. The first five –year plan was based on the harrod-domar model .

The total planned budget of Rs.2,069  crore. This amount was assigned to different sectors which included: industrial sector, development agriculture and community , transport and communication, land rehabilitation.

The target growth rate was 2.1% annul gross domestic product growth the achieved growth rate was 3.6% 

Second five years plan(1956-1961) 

            The second five year plan focused on industry, especially heavy industry. Industrial product was in the second plan particularly in the development of the public sector.

The target growth rate was 4.5% and achieved growth rate was 4.0 % 

Third five years plan(1961-1966) 

          The third plan stressed on agriculture and improvement in the production of wheat, but the brief sino- indian pakiar of 1962 .

In 1965-1966 ,india fought a [indo- pak ]war with pakistan

Due to miserable failure of the third plan the government was forced to declare “plan holidays”

The target growth rate was 5.6% but the actual growth rate was 2.8% 

Fourth five years plan(1969-1974) 

          At this time indira Gandhi was the prime minister.

The indira Gandhi government nationalised 14 major indian bank and the green revolution in India advanced agriculture.

The target growth rate was 5.7% but the actual growth rate was 3.3% 

Fifth five years plan(1974-1979) 

                Stress was by laid on employment, poverty alleviation and justice. The plan also focused on self - reliance in agricultural production and defence.

The target growth rate was 4.4% and the actual growth rate was 5.0% 

Sixth five years plan(1980-1985) 

                  The sixth plan also marked the beginning of economic liberalisation.

The national bank for agriculture and rural development was established. 

The growth rate was 5.2% and the actual growth rate was 5.4% 

Seventh five years plan(1985-1990) 

           The seventh plan marked the congress Party to power with Rajiv Gandhi as the prime minister.

 The growth rate was 5.0% and the actual growth rate was 5.7%. 

Eighth five years plan(1992-1997) 

              Modernization of industries was a major highlight of the eight plan.

Meanwhile India become a member of the world trade organization on 1 January 1995

The target growth rate was 5.6% and the actual growth rate was 6.8% 

Ninth five years plan(1997-2002) 

           The ninth five years plan came after 50 years of Indian independence.

Atal Bihari Vajapayee was the prime minister.

The target growth was 6.5% and the actual growth was 5.35% 

Tenth five years plan(2002-2007) 

           The tenth five years plan set monitorable targets for few key indicators

Attain 8% GDP growth per year

The target growth was 8.1% and the achieved growth was 7.7% 

Eleventh five years plan(2007-2012) 

             Focused on distant education , convergence of formal , non- formal, distant and I.T. Education institutions . 

Rapid and inclusive growth .( poverty reduction)

The target growth was 8.33% and the achieved growth was 7.9% 

Twelfth five years plan(2012-2017) 

            As per the draft document released by the planning commission aims at a growth rate of 8% twelfth five year plan focuses on growth which is faster inclusive sustainable. 

NITI AAYOG initiatives include 15 year road map 7 years vision, strategy and action plan, AMRUT, digital India, atal innovation mission, medical education reform, agriculture reforms etc.