central planning

Central Planning in India refers to plans formulated and financed by the Central Government for implementation at the national level. Unlike [[multi-level planning]], where decision-making is shared across various hierarchies, central planning involves formulation and decision-making primarily at the national level.

The three major central level plans mentioned in the sources are the Five Year Plans, the Twenty-Point Programme, and the Member of Parliament Local Area Development (MPLAD) Programme

1. [[Five-Year Plans]] (FYP)

These plans were historically formulated by the [[Planning Commission]] of India to achieve specific socio-economic targets.

• Early Plans (1st–3rd):

1. The First Plan (1951-56) focused on agriculture due to food shortages
2. The Second Plan (1956-61) shifted focus to heavy industries under the P.C. Mahalanobis Model.
3. The Third Plan (1961-66) aimed for self-sufficiency in food grains but was severely hampered by wars and famine.

• Intermediate Period: Following a “plan holiday” (1966-69),

4. The Fourth Plan (1969-74) emphasized agriculture and stability, during which 14 banks were nationalized.
5. The Fifth Plan (1974-79) introduced the slogan Garibi Hatao (Poverty alleviation)

• Liberalization and Modernization:

6. The Sixth Plan (1980-85) marked the beginning of economic liberalization
7. Subsequent plans focused on technology (7th), LPG reforms (Annual Plans 1990-92), and opening the economy (8th)

• Final Plans: The Eleventh (2007-12) and Twelfth (2012-17) Plans both targeted “faster and more inclusive growth,” with the 12th plan specifically aiming to reduce poverty by 10%

2. Twenty Point Programme

Launched in July 1975 and restructured several times (1982, 1986, and 2006), this was the first programme to adopt a “direct attack” approach to rural poverty.

• Objective: To improve the quality of life for people living [[Below the Poverty Line]] (BPL)
• Key Focus Areas: It includes 20 points covering poverty eradication, support to farmers, labour welfare, food security, housing, and “Health for All”
• Nodal Agency: The Ministry of Statistics and Programme Implementation (MOSPI) serves as the nodal department for this programme.

3. Member of Parliament Local Area Development (MPLAD) Programme

Launched in December 1993, this is a central sector scheme where the entire funding is provided by the Union Government.

• Mechanism: Each Member of Parliament (MP) is entitled to recommend developmental works worth ₹5 crore annually in their constituency.
• The focus is on creating durable community assets such as drinking water facilities, primary education centers, roads, and public health infrastructure.
• Implementation: The District Magistrate (DM) or District Collector is responsible for sanctioning, executing, and maintaining the works recommended by the MP.
• Recommendation Rules:
  • Lok Sabha MPs: Suggest works within their own constituency.
  • Rajya Sabha MPs: Can recommend works in any district within the State from which they were elected.
  • Nominated Members: May suggest works in any one State of their choice.

Criticisms of MPLAD: The scheme has faced several criticisms, including concerns that it violates the separation of powers by giving executive functions to legislators. Other issues cited include low utilization of funds, corruption, and the fact that a large percentage of works were found to be for existing assets rather than the creation of new ones as required by guidelines.