Planning Commission.

 


Planning Commission was not a sudden invention. in fact it has a very interesting story. We commonly assume that private investors such as big businessman entrepreneur are averse to the idea of planning. They seek an  Open Economy without any control in the flow of capital. that was not what happened here rather a section of big industries got together in 1944 and drafted a joint proposal for setting up a planned economy in the state to take the measure initiate is Industrial and other economic Investments. from left to right planning for development was the most obvious choice for the country after independence soon after India became independent the planning commission came into being the Prime Minister was its chairperson it became the most influential and Central machinery for deciding what paath and strategies India would adopt for its development................ the early initiative as in the USSR the planning commission of India opted for five year plans the idea is very simple the Government of India prepares a document that has a plan for all its income and expenditure for the next five years accordingly the budget of the central and all state governments is divided into two parts non-plan budget that is spent on routine items of a yearly basis and plan budget that is spent on the five-year basis as per the priorities fixed by the government.

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a five year plan has the advantage of permitting the government to focus on the larger picture and make long term interventions in the economy. The draft of first five year plan and then the actual document released in December 1951. It generated a lot of excitement in the country people from all walks of life academic generalist Government and private sector employees in released farmers, politicians  discussed and debated the documents extensive excitement.With planning reached its peak with the launching of the second Five Year Plan in 1956 and continued some watching the third five year plans in 1961

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The first five year plan the first five year plan sought to get the country's economy out of cycle of poverty a young economist involved in trapped in the plan argued that India should hasten slowly for the first two decades as the  fast rate of development might endanger democracy. The first five year plan addressed mainly the agrarian sector including investment in dams and irrigation agricultural sector was hit hardest by partition and need it urgent attention. Use allocation were made to the  large-scale projects like Bhakhra Nagal Dam the plan identified the pattern of land and distribution in the country as the principal obstacles in the way of Agricultural growth.it also focused on the land Reform as the key in country's development.One of the basic aims of the planners was to raise the level of national income which could be possible only if the people saved more money than they spent as the base is level of a spending is very low in the 1956 .It could not be reduced anymore so the planners sought to push savings up. that too was difficult as the total capital stock in the country was rather low compared to the total of employment. Nevertheless people saving did rise in the first phase of planned process until the end of the third five year plan .But the price is not as spectacular as expected at the beginning of first 5 Year plan.  From the early 1960 still the early 1970 is the proportion of savings in the country actually dropped consistently. Repeat industrialisation the second FYP twist on heavy industries is was drafted by a team of economics in planner in the different leadership of P.C. mahalanobis is the first plan had reached patients. The second wanted to bring about quick structural transformation by making changes simultaneously is all possible directions. Before this plan was finalized the Congress party at its session held at Avadi   in year then Madras City passed an important resolution.It declared that socialist pattern of society was its goal .This was This  reflected in second plan .The government imposed substantial tariff on import in order to protect domestic industries. Such a protected environment help both public and private Industries to grow as Savings and investment were growing in this period a bulk of these Industries like electricity,Railway, Steel mechanical industries and communication could be developed in public sector in the such a push for in industrialisation marked a turning point in India's development.

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