Politics of Planned Development Test - 2

The Planning Commission of India made the quote, "Planning is a way of organizing and utilizing resources to maximum advantage in terms of defined social ends ", in part 7 of the Planning commission 's draft outline of five year plan.

After the Russian Revolution of 1917, Stalin introduced the Five Year Plan in the USSR. In the USSR the First Five Year Plan was implemented from 1929 to 1933. The same method was adopted and implemented in India from 1951 onwards.

Liberalisation did not form a part of the early phase of India 's development policy.
Though planning, cooperative farming and self sufficiency were ideas that were introduced in the early phase of India 's development policy, liberalisation was initiated much later (in the year 1991) by Manmohan Singh.

The second five-year plan focused on industry. Domestic production of industrial products was encouraged in the Second plan, particularly in the development of the public sector.

Character of people is not a contributory factor for the development as it does not have any contribution in economics, whereas, all other factors like the abundance of national resources, level of technology and frequent and free elections have direct contribution in the imports and exports which affect the GDP of a country.

Budgets are qualitative or financial statements prepared for the purpose of attaining a particular objective.The budget of the central and all the State governments is divided into two parts: ‘non-plan ’budget that is spent on routine items on a yearly basis and ‘plan ’budget that is spent on a five year basis as per the priorities fixed by the plan.

The first five year plan sought to get the country 's economy out of the cycle of poverty. The First Five Year Plan addressed, mainly, the agrarian sector including investment in dams and irrigation. The Plan identified the pattern of land distribution in the country as the principal obstacle in the way of agricultural growth. It focused on land reforms as the key to the country 's development. The government declared that 'socialist pattern of society 'was its goal. This was reflected in the Second Plan. So, the government imposed substantial tariffs on imports in order to protect domestic industries.

Bihar faced the near famine situation in 1965-67. The food shortage was significant in all districts of Bihar, with 9 districts producing less than half of their normal output.

The Planning Commission was set up in March 1950 by a simple resolution of the Government of India. Planning Commission is not one of the many commissions and other bodies set up by the Constitution. It has an advisory role and its recommendations became effective only when the Union Cabinet approved them. The Planning Commission formulated India 's Five-Year Plans, among other functions. With the Prime Minister as the ex officio Chairman, the committee had a nominated Deputy Chairman, with the rank of a full Cabinet Minister. Cabinet Ministers with certain important portfolios acted as ex officio members of the Commission, while the full-time members were experts in various fields like economics, industry, science and general administration. In his first Independence Day speech in 2014, Prime Minister Narendra Modi announced his intention to dissolve the Planning Commission. It has since been replaced by a new institution named NITI Aayog.

Socialist model of development was related to the USSR.