Meaning of economic planning:
Planning
is a target to accomplish anywhere in definite period of time. Some specific
objectives are included in the planning. Therefore, economic planning implies
deliberate control and direction of economy by a central authority for the
purpose of achieving definite targets and objectives within a specified period
of time.
Current Eleventh plan (2065 – 2068)
The
current economic plan of Nepal
is eleventh plan. The main objective of this plan is to realize the change in
the life of the people by reducing poverty and existing unemployment and
establishing sustainable peace.
Strategies of Eleventh Plan:
The
11th plan has set the following strategies:
§
To give special emphasis, to relief
reconstruction and re-integration.
§
Creation and expansion of employment
opportunities.
§
To increase broad – based economic growth.
§
Promotion of Good – Governance and effective
service delivery.
§
Give emphasis to social development.
§
Increase investment in physical infrastructure.
§
Adopt an inclusive development process.
§
To carry out targeted programmes.
Priorities of 11th plan
The
following will be the priorities are of 11th plan:
I.
Physical infrastructure will be reconstructed,
re-habilitated and people affected by conflict will be provided relief,
rehabilitation and social re-integration.
II.
Investment will be increased to support development
through inclusion of communities, regions and gender excluded form all
structures, sectors and process of development.
III.
In order to develop national economy, investment will
be increased in physical infrastructures supporting agriculture, industry and
tourism.
IV.
Priority will be given electricity development.
V.
Priority will be given to infrastructure development
like road, irrigation and communication.
VI.
Investment will be increase in the sectors of
education, health, drinking water and sanitation for human resource
development.
Targets of 11th Plan:
The
11th Plan has set the following targets :
I.
The annual economic growth rate is projected to be 5.5
%.
II.
To reduce people below poverty line from 31 % to 24 %.
III.
To reduce infant mortality rate to 30 %.
IV.
Reduction in total fertility rate to 3 per woman by the
end of the plan.
V.
Reduction in maternal mortality rate to 250 by the end
of the plan.
VI.
Access of drinking water to 85 % of the total
population.
VII.
The growth rate of agriculture sector is estimated to
be 3.6 % per year and non – agriculture 6.5 % non – agriculture sector per
year.
Process of plan formulation:
In
Nepal,
National planning commission (NPC) is a highest body for plan formulation &
execution. The process of plan formulation in Nepal has following steps:
§
Setting
objectives:
The first step of plan formulation is setting the objectives for the
plan. First, the objectives for overall economy are and then the objectives for
different sectors are saved.
§
Setting
targets:
This is the second step of plan formulation. The targets means the
targets stated in quantity. While fixing targets, the appropriate policy should
be adopted. The target expresses the determination to reach the destination.
§
Determination
of growth rate:
This is the third step of plan formulation. First the growth rate of the
economy as a whole is determined and then the growth rate of agriculture and
non – agriculture is also determined. The growth rate is determined on the
basis of available resources and the need of the economy.
§
Macro-economic
projections:
This is the fourth step of plan formulation. The macro-economic
projections of national income, investment and employment are made on the basis
of available data.
§
Statement
of policies:
In general, the different sector policies are stated in the plan. The
policies work as the guideline in preparing programmes for different sectors.
§
Sectoral
planning:
The detailed programmes of different sectors are also stated in the plan.
Similarly, the sectoral allocation of resources is also made in the plan.
§
Priorities
in the planning:
The priorities as to the achievement of objectives and targets are fixed
in the plan. The need of the economy is unlimited but the resources are
limited. Therefore, the priorities should be taken into account the existing
financial and physical resources.
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