Planning is the systematic regulation of a purposeful activity. It is an invaluable aid to policy and helps to active national goals and is a continuous process. Planning is a rational process and concerns itself with the proposals for the future with the evolution of alternate proposals and the methods with which these proposals may be achieved. The Planning commission was set up in India in 1950.

The functions of planning commission are listed below –

(a) To make an assessment of the materials capital and human resources of the country, including technical personnel and investigate the possibilities of augmenting such resources as are found to be deficient in relation to the nations’ requirements.

(b) To formulate a plan for the most effective and balanced utilization the country’s resources.

(c) Determination of priorities define the stage in which the plans should be carried out and propose the allocation of resources for the due completion of each stage.

(d) To indicate the factors which are tending to retard economic development and determine the cancelation which in view of the current social and political situations should be established for the successful execution of the plan.

(e) 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?

(f) To appraise from time to time the progress achieved is the execution of each stage of the plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary.