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Class : 11
Unit : Economics

Discuss the process of plan formulation.

Ans : Planning is an important tool of economic development for the developing countries like Nepal. While formulating plan, it should be clear that which sector should be given priority and what should be the major objectives, targets and policies. In Nepal, national planning commission formulate plan by the direction of National Development Council. The process of plan formulation consists of following steps: i) Evaluation of past plan and estimation of new plan:- The planning authorities evaluates the previous plan. In the process of evaluation, success and failure of the current and the past plan are evaluated. Failed plans should be changed with improvement in new plan. The planning authority should also estimate the overall resources required for the proposed plan. ii) Collection of new project proposals:- The planning authorities collects project proposals from District Development Committee of each district of the country. Similarly District level authority may also send their program to National commission through their respective ministries. iii) Discussion:- The Most important step in plant formulation is discussion on the proposed plant. The discussing take place among National Development Council, National planning commission, Ministries, secretaries, export from concerned field etc. The Conclusion derived from the discussion gives a shape to a new plan. iv) Determination of objectives, targets and priorities:- A complete development plan should determine targets and growth rate in the major field of the economy like agriculture, industries, service sector etc. Similarly a complete development program should determine its objective to be achieved during the proposed plan. v) Authorization and implementation of plan:- The final document of development plan prepared by planning authority is presented to National Development Council for authorization. After authorization of new plan it is implemented in association with government of Nepal.
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