SSC CGL 2015:- ECONOMICS

                                                                    Planning

 Historical Background

·         The credit for concretizing ideas on national planning goes to Sri M. Visvesvaraya, the visionary engineer and statesman of Mysore who published his Planned Economy for India in 1934, which was a blueprint for a ten year programme of planned economic development for India.

·         Indian National congress in 1938 made a National Planning Commission Chaired by Pt. Jawaharlal Nehru.

·         In 1944, Sriman Narayan prepared The Ganghian Plan.

·         In 1945, M.N. Roy proposed The people Plan

·         In 1950, Jaiprakash Narayan published a plan called Sarvodaya Plan.

·         Economic Planning is in the Concurrent List of the Seventh Schedule of the Indian Constitution.

Planning Commission

·         The planning Commission of India was constituted by Government of India on the resolution of cabinet on 15^th March, 1950. It is neither mentioned in the constitution nor it has been established by an act passed by the parliament.

·         Prime Minister of India is  the ex-officio chairman of planning Commission

·         Jawaharlal Nehru was the chairman of first Planning Commission of India.

·         Planning commission doesn’t have any fixed tenure.

National Development Council (NDC)

·         It was constitute on 6^th August, 1952. The Prime Minister is the Chairman of NDC and the secretary of NDC.

·         It is also a non- statutory body.

·         NDC approves the five year plans. After its final approval only, the approach papers of the plan are published and the Parliament passes grants to it.

·         NDC also evaluates national planning from time to time.

Do you know?

·         The growth target for the first three plans was set with respect to national income. In the fourth plan it was NDP. Thereafter in all plans it was GDP at factor cost.

·         Actual growth rate achieved in all plans is estimated terms of National Income (i.e. NNP at factor cost).

·         The growth rate in 3^rd plan was minimum, where as it was first plan to target 5% growth rate.

·         Vth   plan was the first plan to achieve more than 5% growth rate.

Sectoral Allocations of the XIth plan

Segment                                       % of GDP

1. Social services …………………………………………30.2%

2. Energy……………………………………………………23.4%

3. Agriculture & allied activities 3.7%

    + Rural Development               8.3%

    + Irrigation                                 5.8%

    + Special Area Programme     0.7%.........18.5%

4. Transport……………………………………………...15.7%

5. Industry and Minerals…………………………….4.2%

6. Communications…………………………………… 2.6%

7. Science, Technology & Environment…….. 2.4%

8. General Economic Services…………………… 1.7%

9. General Services…………………………………….1.2%