Method of National Plan Formulation

The Plan has to go through various stages in order to reach its final form. About 2-3 years before the implementation of the Plan, the discussions on the targets and programs of the plan begins. The Planning Commission collects the data of national product, national consumption, availability of resources, national investment and saving for the future plan and it prepares micro and macro plans, keeping in view their allocation arrangements. Thereafter, these plans along with the data sent to the National Development Council. The NDC again sends it back to Planning Commission with or without any amendment. On this basis, the ministries of Center and State Governments are asked to prepare their projects. The Planning Commission obtains suggestion from a panel of experts operating in various sectors. On the basis of the requisites of the plan obtained from different ministries and opinion of the different specialists, the Planning Commission prepares a draft memorandum of the plan, in which all the policies and important details of the plan are laid down. This draft memorandum is sent to central cabinet for discussion. After assessment, the central cabinet sends it to National Development Council along with its suggestions. The NDC again sends it to Planning Commission with its suggestions. The Planning Commission prepares a draft outline of the objective and programs of the plan, keeping in view the draft memorandum and suggestions given by the Cabinet and NDC. This outline is sent to the various State Governments and Central ministries. It is published after receiving acceptance from the NDC. This published format along with the reactions and suggestions of the experts is again sent to the Central Cabinet and National Development Council. The approved format is laid down in its final form, which is presented to the Lok Sabha for discussion. After getting it ratified by the parliament the government implements the Plan.