Planning is the process of organizing available resources of a country for the purpose of fulfilling certain objectives.
What is a plan?
A plan is a set of goals/ objectives that a person/ the government intend to achieve.
Planning to:
(a) A Consumer: Planning is the process of making decisions on how to use the available income to satisfy wants.
(b) A producer: Planning is process of making decision on how the available resources can be allocated to produce goods and services. It is the decision on
- What to produce
- How to produce
- For whom to produce
(c) The government: Planning is the conscious or deliberates the government’s effort in influencing, directing and controlling economic variables. These variables are economic phenomena which affect the economy, i.e. cause economic changes.
Examples of such variables are:
(i) Investments
(ii) Consumption
(iii) The government expenditure
(iv) Inflation
(v) Population change
(vi) Employment and unemployment
(vii)Foreign trade (Export and Import)