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Unit 2 Planning Process: 2.0 Objectives

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Planning Process

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UNIT 2 PLANNING PROCESS
Contents
2.0 Objectives
2.1 Introduction
2.2 Process of Planning
2.3 Plan Schemes
2.4 Machinery for Planning at the National Level
2.5 Machinery for Planning at the State Level
2.6 Let Us Sum Up
2.7 Key Words
2.8 Suggested Readings
2.0 OBJECTIVES
This unit is aimed at enabling you to understand the process of planning in our
country at the national and the state level. At the end of this unit, you should be
able to:
l describe the process of planning in India;
l indicate the nature of the planning machinery both at the national and state
levels, and
l indicate the linkages between the levels of planning.
2.1 INTRODUCTION
The subject of rural development has acquired great importance in recent times.
Alongside this, the process of planning has also become crucial, particularly because
planning is viewed as an important means of solving some of the outstanding issues
of development. In this unit, you will be primarily acquainted with the process of
planning and the machinery of planning in India. You will see that this is a complex
exercise involving participation of central and State government and other agencies.
After reading this unit, you will be able to understand the other major issues in
planning structures, particularly the ones relating to decentralization, which are the
focus of attention in the subsequent units of this block.
2.2 PROCESS OF PLANNING
Here, we shall consider how in the broader time perspective of planning, the budget
and the annual plan are placed in the time frame of the Five Year Plan.
Perspective Planning
In any planning process, a set of objectives is to be achieved within a time frame.
In India, the well accepted principle is formulating Five Year Plans within which we
have the Annual Plans. However, there are occasions when the government would
like to set for itself certain objectives in a longer time frame, say 10 to 15 years.
This process of planning in a longer time frame is perspective planning. In the
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framework of perspective planning, targets in the longer time frame are also set.
In the Indian context, two good examples of this can be observed in the context
of the Minimum Needs Programme (MNP) and the reduction of poverty in our
country.
With regard to the former, in the Sixth Five Year Plan, for various sectors like
elementary education, rural health, rural water supply, rural roads, rural electrification,
housing for landless labour, environmental improvement of urban slums, nutrition,
etc., the target to be achieved were given time period upto 1990, 1995 and, in some
cases, upto to 2000 A.D. Thus, there was a perspective for these sectors in a 10,
15 or 20 year time frames.
Likewise, in regard to the poverty situation, the Sixth Five Year Plan in 1980 set
an objective of bringing down the percentage of population below the poverty line
from about 50 per cent at that time to 10 per cent in 1995. The Seventh Plan was
set in a 15 year perspective and, for some sectors, a perspective plan of 15 years
was prepared and certain objectives and physical targets indicated. Perspective
planning, thus, situates the current plan in a long-term scenario and gives a broad
indication of the development path.
Five Year Plans
The main vehicle of planning in India, however, is the Five Year Plan. We began
the process in 1951 and after three successive plans, the period between 1966 and
1969 saw three Annual Plans. This has sometimes been termed as the period of
Plan Holiday. From 1969 again, the Five Year Plans have been formulated though,
here too, there was a break in 1978 and again in 1980. The Fifth Five Year Plan
1974-79 was terminated a year ahead of schedule in 1978 and the then government
formulated a draft Five Year Plan for 1978-83 to give effect to its policies and
programmes. However, before this plan could be finalized, the government changed
and we, therefore, had a new Sixth Five Year Plan for the period 1980-85. One
could obviously see here an understandable relationship between the democratic
and political processes on the one hand and the development process on the other.
The government in power naturally wants the developments process to take place
in accordance with its stated policies and this is given effect through the mechanism
of Five Year Plans.
Well before the beginning of a five year plan period, the Planning Commission and
the state Government initiate the planning exercise. For example, the process of
preparing the Eight Five Year Plan (1990-95) began in 1987. The initial exercises
began with a critical review of the state of the economy, the problems facing it and
the outstanding developmental problems (social and economic). The approach, strategy
and main issues (growth rates, resource mobilization, social justice consideration,
etc.) are discussed within the Planning Commission through a series of internal
meetings. The Planning Commission also invites eminent economists and public
figures for their views and holds meetings with key figures of industry and trade,
trade unions and social service organisations.
At the highest policy making level, the full Planning Commission meets under the
Chairmanship of the Prime Minister. This body approves the Approach Paper to the
Plan. The document is basically a statement of the objectives and the strategy to
be adopted for the plan period. The Approach Paper is then presented before the
National Development Council (NDC) for its consideration.
Planning Process
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The Central Ministries begin their planning exercises on the basis of the guidelines
given by the Planning Commission. Steering Groups/Working Groups are set up by
the Central Ministries. On some key issue of an inter-sectoral nature, the Planning
Commission constitutes Steering Groups/Task Forces. There is close interaction
between the Ministries and the Subject Division concerned of the Planning
Commission. Based on the reports of these groups, the draft plan proposals are
prepared by the Ministry concerned. These are then sent to the Planning Commission
where a further round of discussions takes place between the Ministry concerned
and the Planning Commission after which the sectoral plan is given a shape. These
are then aggregated, reviewed, modified and integrated within the overall frame of
the Central plan.
Simultaneously, the State Planning Department begins work to prepare the State
plan proposals. It initiates action on the basis of the guidelines sent by the Planning
Commission and the Central Ministries. The broad strategy and approach to the
State plan is considered in the first instance and exercises begin for reviewing the
plan, assessing the resources position and extent to which additional resources can
be mobilized, and the priority areas. The Departments are asked to prepare the
sectoral proposals, which are then reviewed, modified and integrated within the
overall State plan frame, taking into consideration the States priorities and the
resource position. The draft plan is then sent to the Planning Commission where a
discussion takes place for each sector between the State government and the
concerned Ministry at the Centre and the concerned subject Division in the Planning
Commission. In the finalisation of the State Plans, both the Deputy Chairman of the
Planning Commission and the State Chief Minister participate.
Let us give an example from the rural development sector. For the Seventh Plan,
in the case of the Department of Rural Development, seven working groups, each
headed by the Secretary of the Department, were constituted. These were for self-
employment, wage employment, land reforms, training, involvement of voluntary
organisations, technology, management and administration of rural development,
area development programmes and village amenities programmes. Each of these
working groups, in turn, had constituted smaller sub-groups. These groups/sub-
groups, which comprised officials, non-officials and experts, examined the current
situation, reviewed the existing strategy and performance and then suggested a
strategy for the Seventh Plan, keeping in mind a longer time frame. The schemes
were identified (both current and new schemes) and the outlays indicated.
After the exercises of Central Ministries and State Government were completed by
the Planning Commission, the Central and State plans were integrated and outlays
for various sectors as well as programmes in these sectors were indicated. The
approval of the Planning Commission (the full Commission included the Prime
Minister, some Cabinet Ministers who attended as ex-officio members and full
time members), the Union Cabinet and the N.D.C. is then sought.
Annual Plans
The Annual Plans are prepared both by the Central Ministries and the State
Governments for the sector concerned within the framework of the respective Five
Year Plan, which has been approved. These exercises begin normally around
September/October of the preceding year. Since the broad framework of a Five
Year Plan is available in terms of programmes, financial outlays, targets, etc., this
exercise is not as elaborate as the one for preparing Five Year Plans.
The Central Ministries/Departments prepare their Annual Plan proposals and submit
them to the Planning Commission. These are then discussed at the level of Secretary,
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Planning Commission and Secretary of the Department/Ministry for finalization, in
which officials of the Ministries concerned and the Planning Commission also
participate. The Ministry of Finance is closely involved in these discussions, since
they have to integrate the Annual Plans of each Ministry into the annual budget of
the Central Government, which is normally presented to the Parliament on the 28
th
of February.
Similarly, the work of preparation of the State Annual Plan precedes the preparation
of the Annual Budget. For this purpose, the Planning Department holds a series of
meetings with various administrative departments in the State Secretariat and the
Heads of departments concerned with the Plan. While doing so, the Planning
Department keeps in mind the requirements of spillover expenditure on continuing
schemes, funds required to meet the commitments already made by the Government,
and funds needed to maintain the tempo of development and also the new programmes
that could be taken up in the next year, subject to availability of resources.
Keeping in view the requirements of funds, the estimates of likely resources that
can be mobilized, as also the inter sectoral priorities, a tentative Annual Plan ceiling
with its sectoral physical and financial break-up is prepared and submitted for
approval to the Council of Ministers. Thereafter, the sectoral financial allocations
are intimated to the departments concerned, which make the plan exercise and
submit the sectoral plan, the schemewise proposals for preparation of the annual
plan document to be submitted to the Planning Commission. These proposals are
then considered by the State Planning Department and integrated within the overall
State plan frame. A consolidated draft document is prepared and submitted to the
Planning Commission. The proposals are discussed in the Working Groups constituted
by the Planning Commission with representatives of the State Government. The
suggestions of the Working Groups are considered and finalized in a meeting between
the Chief Minister, Minister in-charge of Planning of the state and the Deputy
Chairman of the Planning Commission. The State Government, thereafter, integrates
this Annual Plan into their annual budget, which is presented to the State Legislature,
normally in February or March.
In the case of Annual Plans, the process of approval by the full Planning Commission,
Union Cabinet or the NDC does not take place primarily because the Annual Plan
is prepared within the framework of a Five Year Plan, which has already gone
through this process.
Budget
The Budget, which is prepared at the Union and State Government level every
year, is an instrument of fiscal policy. It covers the period between 1st April and
31st March of the next year. It includes both the receipts and expenditures of
Government. It includes the non-plan and plan expenditures. The plan expenditure
is the development budget of the Government and reflects the Annual Plan of the
Government. It aggregates the Annual Plans of various Ministries/Departments in
the case of the Central/State plan.
Mid-term Appraisal
Normally, during the course of a Five Year Plan, a mid-term appraisal is undertaken
by the Planning Commission. In the case of the Seventh Five Year Plan 1985-90,
this was undertaken by the Planning Commission during 1987-89. This exercise
provides an opportunity to review the progress of the Plan and generate signals for
action, both for the remaining period of the Five Year Plan and possibly for the next
Five Year Plan also.
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The process followed for the Seventh Plan mid-term appraisal was that sectoral
assessments were prepared by the subject divisions of the Planning Commission.
The Ministries concerned were also involved by the Planning Commission in the
review of progress, the current problems and issues and the course of action.
These were discussed in meetings in the Planning Commission in order to develop
an initial draft appraisal, which was reviewed in the Planning Commission at a
number of meetings chaired by the Deputy Chairman. The document approved by
the Planning Commission was then placed before the NDC and was tabled in the
two House of Parliament.
Check Your Progress I
Notes: a) Use the space provided below for your answers.
b) Compare your answers with the text.
Explain briefly, in your words, the following terms:
a) Perspective Planning
b) Five Year Plans
c) National Development Council (NDC)
d) Annual Plans
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2.3 PLAN SCHEMES
The Plans given effect through various schemes are of three types Central
schemes, Centrally sponsored schemes and State sector schemes. Since the
subject of economic and social planning is in the Concurrent List of the Indian
Constitution, Plans schemes are in the State Plan as well as in the Central Plan.
The plan schemes in the Central Plan are generally of two types, namely, Central
Sector Schemes and Centrally Sponsored Schemes. The Central Plan outlay is the
sum total of the outlay on Central sector schemes and the Central share of centrally
sponsored schemes.
Central Sector Schemes are those, which are fully funded and implemented by the
Central Government and its organisations. Centrally Sponsored Schemes, however,
are those, which are fully or in part funded by the Central Government and
implemented by the State or their agencies. The extent to which the Central
Government supports Centrally sponsored schemes varies in some cases it is 100
per cent and in some 75 or 50 per cent. The Centrally Sponsored Schemes Sector
has for long been contentious between the Central and the State Governments and
have been viewed by the latter as an encroachment into what is considered by them
as justifiably the States sphere of activity. On the other hand, Central participation
through Centrally Sponsored Schemes has been justified on the ground that without
this, important programmes will not get the priority they deserve in several, if not
all, the States. In regard to Centrally Sponsored Schemes, the major ones under
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rural development are IRDP, J awahar Rozgar Yozana, DDP, DPAP, all of which
you have dealt with in the previous course.
The State Plan is the sum total of State sector schemes plus the States share of
Centrally sponsored schemes. An important example of a State Plan Scheme funded
entirely by the State Government in the sphere of rural development is the
Employment Guarantee Scheme of Maharashtra.
Plan Assistance
Plan assistance is provided by the Central Government to the States for the State
Plan. In 1969, the NDC approved the criteria for allocation of funds by the Planning
Commission to the States. This is popularly called the Gadgil Formula. Under this
Formula, after taking care of the requirements of Assam, Nagaland and Jammu &
Kashmir, the Central Governments assistance was distributed 60 per cent on the
basis of population, 10 per cent on per capita income (only to those states whose
per capita incomes were below the national average), 10 per cent on commitments
in respect of major continuing irrigation and power projects (each costing Rs. 20
crores and above), 10 per cent on the basis of tax efforts in relation to per capita
income, and 10 per cent to meet special problems. Thirty per cent of the funds
were provided as outright grants and 70 per cent as loans. However, in the case
of Assam, Jammu & Kashmir and Nagaland, the entire Plan funds were provided
as outright grants.
Since 1980, a modified Gadgil Formula is being followed by the Planning Commission
for allocation of plan funds. Under this, first a lump sum amount is pre-empted from
the total pool of Central assistance to meet the requirements of Special Category
States, namely, Assam, Himachal Pradesh, Arunachal Pradesh, Jammu & Kashmir,
Mizoram, Manipur, Maghalaya, Nagaland, Tripura and Sikkim. The balance amount
is distributed among the remaining States giving 60 per cent weightage, 10 per cent
to tax effort, 20 per cent on per capita income below the national average and 10
per cent to meet special problems.
In recent times, there has been pressure from the States for the Gadgil Formula to
be suitably modified to make it more responsive to changes that have taken place
during the last few decades. There is, however, no unanimity among the States,
either in regard to the criteria to be followed, or the weightage to be given to them
in allocating plan funds.
Check Your Progress II
Notes: a) Use the space provided below for your answer.
b) Compare your answer with the text.
What is the main difference between Central schemes, Centrally sponsored
schemes and State plan schemes?
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2.4 MACHINERY FOR PLANNING AT THE
NATIONAL LEVEL
The Directive Principles of State Policy enshrined in our Constitution, though not
enforceable by any court, lay down principles fundamental to the governance of the
country, Article 37 clearly states that it will be the duty of the state to apply these
principles in making laws. Important Articles of the Constitution of interest to rural
development are Articles 38, 39, 39A, 40, 41, 43, 46, 47, 48 and 48A. The detailed
provisions are given in Annexure-I.
Briefly stated, Article 38 relates to promoting the welfare of the people, Article 39
lays down the broad policy, which the state should follow for ensuring adequate
means of livelihood for its citizens, protection of interests of children and women,
etc. Article 40 relates to organising village pachayats, while Article 41 deals with
the right to work, to education and to public assistance in some cases. Article 43
relates to securing a living wage and Article 46 to the educational and economic
interests of the weaker sections of society. Article 47 relates to the standard of
living, Article 48 to organisation of agriculture and animal husbandary and Article
48A to protection and improvement of the environment and safeguarding of forests
and wild life. Thus, the Constitution contains provisions relating to the broad directions
to be followed by the state in relation to the welfare and development of people of
the country.
Planning Commission
The Planning Commission is the technical body for facilitating the planning process
in our country. It was set up by the Government in March, 1950. Its functions
are:
i) to make an assessment of the material, capital and human resources of the country,
including technical personnel, and investigate the possibilities of augmenting such
of these resources as are found to be deficient in relation to the nations
requirements;
ii) to formulate a Plan for the most effective and balanced utilization of the countrys
resources;
iii) to determine priorities, define the stages in which the Plan should be carried out
and propose the allocation of resources for the due completion of each stage;
iv) to indicate the factors, which tend to retard economic development and determine
the conditions which, in view of the current social and political situation, should be
created for the successful execution of the Plan;
v) to determine the nature of the machinery, which will be necessary for securing
the successful implementation of each stage of the plan in all its aspects;
vi) to appraise, from time to time, the progress achieved in the execution of each
stage of the Plan and recommend the adjustments of policy and measures that
such appraisal may show to be necessary; and
vii) to make such interim or ancilliary recommendations as appear to be appropriate
either for facilitating the discharge of the duties assigned to it or, on a consideration
of prevailing economic conditions, current policies, measures and development
programmes or on an examination of such specific problems as may be referred
to it for advice by the Central and State Governments.
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The organisation of the Planning Commission facilitates its role as an advisory body
functioning at the highest policy level without further being involved in the
responsibilities of day-to-day administration. The Prime Minister is the Chairman of
the Planning Commission. The Commission has a Deputy Chairman and six or more
full time members. The Finance Minister, and a few other Ministers of Cabinet rank
are ex-offcio members. At times, the Deputy Chairman is also the Minister of
Planning. A full-time Secretary coordinates the technical and administrative activities.
The Planning Commission functions through a series of divisions and sections. It
has eight general divisions and eighteen subject divisions. Details of these are given
in Annexure-2.
Within the general organisation of the Planning Commission, the Programme Evaluation
Organisation (PEO) has functioned since 1952 as an ancilliary agency. It undertakes
evaluation studies to assess the impact of selected Plan Programmes in order to
provide feedback to the planners and implementing agencies.
National Development Council
We have seen that, under the Constitution, the subject of economic and social
planning is in the Concurrent List, as this is a subject in which the Centre as well
as the States are interested and have to work in unison. The coordination of policies
between the two integrating structures of the federal set-up is brought about through
a process of mutual consultation. This system of consultation in the formulation of
policies on the basis of overall national requirements is the central point of planning
in our country. The National Development Council (NDC) is the highest policy
making body, which provides the opportunity for plans to be formulated and
implemented throughout the country as a unified development effort. Its Chairman
is the Prime Minister. Its Members comprise Cabinet Ministers (some, not all),
Chief Ministers of all the States and Members of the Planning Commission. The
NDC is the body at the highest policy making level, which approves the approach,
and later, the final plan.
Planning Units of Central Ministries
Since the Central Ministries have an important role in the formulation of plans and
considerable stake in the policies and programmes, which ultimately find a place,
most Central Ministries have separate divisions or units for coordinating the work
of the ministry to undertake these functions. The planning unit of the Ministry works
in close collaboration with the programme division of the Planning Commission. It
also initiates and coordinates the work of the Working Groups that are set up for
preparing the plan. The draft proposals, incorporating the suggestions of the different
working groups, are also prepared by it and these are then finalised by the Department/
Ministry concerned and sent to the Planning Commission.
2.5 MACHINERY FOR PLANNING AT THE STATE
LEVEL
As in the Centre, so also in the States, a number of organisations and departments
are involved in the planning process. Let us now consider these.
State Planning Department
On account of diversity in administrative organisations in different States and Union
Territories of our country, it is not possible to have a single uniform pattern for the
planning machinery. However, a broad understanding of the planning machinery, as
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it prevails in a large number of States, is given in this section.
In each State, there is a Planning Department, which is responsible for the preparation
of the Five Year Plans, Annual Plans, monitoring of the plans and, generally, the
evaluation of programme through its evaluation wing. Essentially, the Planning
Department is responsible for coordinating the development efforts in the state.
The Five Year Plan for the State provides the framework within which Annual
Plans are prepared. These take into consideration the guidelines set by the Planning
Commission. The Planning Department is responsible for preparing the Five Year
Plan and ensuring that the Annual Plans reflect the steps being taken to achieve
the broad objectives laid out in the State Five Year Plan.
In most States, in addition to the State Planning Department, there exists a State
Planning Board. It comprises the Ministers concerned, experts, non-officials and
officials. Normally, the role of such a Board is advisory, relating to plan strategies.
It also suggests ways and means to improve the working of various programmes
in the State.
Departments of Economics and Statistics, Manpower and Evaluation
In most states, within the administrative umbrella of the State Planning Department,
there are departments of Economics and Statistics, Manpower and Evaluation. The
Department of Economics and Statistics provides technical personnel at the State
and lower levels for planning and monitoring of programmes. The Manpower
Department assesses the requirements and need for manpower in the coming years
and enables the planning process to incorporate action plans for meeting these
needs in such a way that the over all manpower requirements for Plans
implementation are fulfilled. In addition, the Manpower Department is also sometimes
entrusted with the responsibility of planning for the in-service training and orientation
of the State officials. The Evaluation Department, as the name suggests, is entrusted
with the task of conducting evaluation studies of the various programmes being
undertaken on concurrent or ex post facto basis. Such studies provide feedback to
the State Government for enabling corrective actions to be taken in regard to Plan
schemes.
District Planning Agencies
At the district level, most of the heads of departments are represented by officials
termed as District level officers. For example, there are Executive Engineers for
PWD, Irrigation, Public Health, Engineering Department, State Electricity Board,
District Education Officer, Chief Medical and Health Officer, etc. These officials
are part of the planning process at the District level.
In the context of major poverty alleviation programmes, viz., IRDP, NREP and
RLGP, in 1980, the District Rural Development Agencies (DRDA) were set up to
plan, implement and monitor such programmes. These are registered societies,
generally headed by the District Collector. The Members of Parliament and Members
of State legislatures from that district as also State officials are among its members.
In many States, Panchayati Raj institutions have important roles to play in the
context of planning rural development programmes. Generally, such bodies are of
three tiers and, in some cases, two tiers. Particularly in Gujarat, Maharashtra and
more recently in Andhra Pradesh and Karnataka, such bodies have been entrusted
with important responsibilities in relation to planning and implementation of rural
development programmes.
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In State like Maharashtra, there are District Planning and Development Committees
(DPDC), which take important decisions with regard to planning rural development
programmes at the district and lower levels. Such Committees may be presided
over by Ministers or non-officials. In other cases, there may be District Planning
Committees, which are for coordinating the work of development programmes
and sometimes for taking decisions relating to location of projects, such as schools,
roads, villages to be electrified, villages where drinking water is to be provided,
etc.
The Constitutions 74
th
Amendment Act, 1992 has made specific provision for
setting up a District Planning Committee (DPC) in every State to consolidate the
plans prepared by the panchayats and the municipalities in the district and to
prepare a draft development plan for the district as a whole (Article 243 D(i)). Till
April 2003, DPCs had been constituted in 14 States and three Union Territories.
Check Your Progress III
Notes: a) Use the space provided below for your answer.
b) Compare your answers with the text.
What are the respective roles of the Planning Commission, the Central Ministries
and the State Planning departments in the formulation of plans?
(Hint: See the text of Sections 2.3 to 2.5 and write your answer)
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2.6 LET US SUM UP
This unit has two main themes, namely, the process of planning and the machinery
for planning at the national and State levels. A brief idea has also been given
regarding important planning agencies at the district level.
We saw that planning is not just an aggregation of physical and financial targets,
but is a process of giving a direction to the development effort in such a way that
the fruits of growth reach different sections of society, especially the disadvantaged
ones. Five Year Plans are formulated in the perspective of long-term development.
This enables us to raise the national effort to match specific long-term goals.
Annual plans give operational meaning to these exercises. Monitoring, review and
evaluation procedures help us to keep the programmes on the right course. The
process of planning enables the Government to respond to the needs of the people,
of course, keeping in mind the resources available at its command.
In a democratic and federal structure like ours, the process of planning has evolved
on the basis of consultations between the Central and State government and
involvement of the States in the Planning process. We also discussed about the
machinery for planning at the Central and the State levels and saw the inter-
relationships, both vertical and horizontal.
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31
2.7 KEY WORDS
Macro-level Planning : Planning at the aggregate level, i.e., at the level of the
country or state.
Infrastructure Base : Those industries or facilities, which are of fundamental
importance to development, e.g., transport, power,
roads, water, etc.
2.8 SUGGESTED READINGS
Government of India (1952), The First Five Year Plan, Planning Commission, New
Delhi.
Government of India (1970), Fourth Five Year Plan, Planning Commission, New
Delhi.
Sarkaria Commission (1988), Commission on Centre-State Relations Report,
Government of India Press, New Delhi.
Government of India (1988), The Constitution of India, Ministry of Law, J ustice
& Company Affairs, New Delhi.
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ANNEXURE I
Relevant Articles of the Constitution of India
Article 37: Application of the principles contained in this part
The provisions contained in this part shall not be enforceable by any court, but the
principles therein laid down are, nevertheless, fundamental in the governance of
the country and it shall be the duty of the State to apply these principles in making
laws.
Article 38: State to secure a social order for the promotion of welfare of the
people
1) The State shall strive to promote the welfare of the people by securing and
protecting, as effectively as it may, a social order in which justice, social, economic
and political, shall inform all the institutions of the national life.
2) The State shall, in particular, strive to minimize the inequalities in income and
endeavour to eliminate inequalities in status, facilities and opportunities, not only
amongst individuals, but also amongst groups of people residing in different areas
or engaged in different vocations.
Article 39: Certain Principles of State Policy to be followed by the State
The State shall, in particular, direct its policy towards securing
a) that the citizens, men and women equally, have the right to an adequate means of
livelihood;
b) that the ownership and control of the material resources of the community are so
distributed as best to subserve the common good;
c) that the operation of the economic system does not result in the concentration of
wealth and means of production to the common detriment;
d) that there is equal pay for equal work for both men and women;
e) that the health strength of workers, men and women and the tender age of children
are not abused and that citizens are not forced by economic necessity to enter
vocations unsuited to their age or strength;
f) that children are given opportunities and facilities to develop in a healthy manner
and in conditions of freedom and dignity and that childhood and youth are protected
against exploitation and against moral and material abandonment.
Article 39A: Equal justice and free legal aid
The State shall secure that the operation of the legal system promotes justice, on
a basis of equal opportunity and shall, in particular, provide free legal aid, by suitable
legislation or schemes or in any other way, to ensure that opportunities for securing
justice are not denied to any citizen by reason of economic or other disabilities.
Article 40: Organisation of Village Panchayats
The State shall take steps to organise village panchayats and endow them with such
Planning Process
33
powers and authority as may be necessary to enable them to function as units of
self-employment.
Article 41: Right to work, to education and to public assistance in certain
cases
The State shall, within the limits of its economic capacity and development, make
effective provision for securing the right to work, to education and to public assistance
in cases of unemployment, old age, sickness and disablement, and in other cases
of undeserved want.
Article 43: Living wage, etc., for workers
The State shall endeavour to secure, by suitable legislation or economic organisation
or in any other way, to all workers, agriculture, industrial or otherwise, work, a living
wage, conditions of work ensuring a decent standard of life and full enjoyment of
leisure and social and culture opportunities and, in particular, the State shall endeavour
to promote cottage industries on an individual or cooperative basis in rural areas.
Article 46: Promotion of educational and economic interests of Scheduled
Castes, Scheduled Tribes and other weaker sections
The State shall promote, with special care, the educational and economic interests
of the weaker sections of the people, and in particular, of the Scheduled Castes and
the Scheduled Tribes, and shall protect them from social injustice and all forms of
exploitation.
Article 47: Duty of the State to raise the level of nutrition and the standard
of living and to improve public health
The State shall regard the raising of the level of nutrition and the standard of living
of its people and the improvement of public health as among its primary duties, and,
in particular, the State shall endeavour to bring about prohibition of the consumption,
except for medicinal purposes, of intoxicating drinks and of drugs, which are injurious
to health.
Article 48: Organisation of agriculture and animal husbandry
The State shall endeavour to organise agriculture and animal husbandry on modern
and scientific lines and shall, in particular, take steps for preserving and improving
the breeds, and prohibiting the slaughter of cows and calves and other milch and
draught cattle.
Article 48A: Protection and improvement of environment and safeguarding of
forests and wild life
The State shall endeavour to protect and improve the environment and to safeguard
the forests and wild life of the country.
Rural Development
Planning
34
ANNEXURE 2
Divisions of Planning Commission
A) General Divisions
1) Economic Division, Financial Resources Division, Development Policy Division,
International Economics Division, Socio-Economic Research Unit.
2) Perspective Planning Division.
3) Labour, Employment and Manpower Division.
4) Statistics and Surveys Division.
5) State Plans Divisions, including Multi-Level Planning, Area Development and
North-Eastern regions.
6) Project Appraisal Division.
7) Monitoring and Information Division
8) Plan Coordination Division.
B) Subject Divisions
1) Science and Technology Division.
2) Agriculture Division.
3) Rural Development Division.
4) Irrigation and Command Area Development Division.
5) Power and Energy Division.
6) Industry and Minerals Division.
7) Village and Small Industries Division.
8) Transport Division.
9) Education Division.
10) Rural Energy Division.
11) Housing, Urban Development and Water Supply Division.
12) Health and Family Welfare Division.
13) Social Welfare and Nutrition Division.
14) Backward Classes Division.
15) Communication and Information Division.
16) Indo-Japan Committee.
17) Computer Service Division.
18) Western Ghats Secretariat.

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