Plan formulation

The process of plan formulation is as following:

1. The first step plan formulation is setting the objectives of the plan.First the objectives for overall economy are set and the objectives for different sectors are set.Without objectives,priorities and targets cannot be fixed The objectives of a plan may differ from country to country.The major objectives of a developing country like Nepal has been to accelerate the economy growth,poverty alleviation,increase employment opportunities,meet basic needs of people and so on.
2. Setting target :The target mean the objective stated in quantity.While fixing targets,the appropriate polices should also be adopted.According to Arthur Lewis,target are essential for a plan to be successful.
3. Determination of growth rate :The growth rate of the as a whole is determined.Similarly,the growth rate of agriculture and non-agriculture sector is also determined.The growth rate is determined on the basis of available resources and the need of the country.
4. Macro -economic projections :The macro-economics projections of national income,investment,and employment are made on the basis of relevant statistics.
5. Statement of policies :In general,the different sectoral,policies are stated in the plan.The policies work as the guidelines of resources is also made.The sectoral programs are based on the survey of sec tore. The policies on price,tax,incentive to private sector ans stated in the plan.
6. Sectoral planing :The detailed programs of sectors are also in the plan.Similarly,the sectoral allocation in preparing of resources is also made.The sectoral programs are based on the survey on sectoral condition.
7. Priorities in planing :The priorities as to the achievement of objectives and target are fixed in the plan.The need of the economy is unlimited,but the resources are limited.Hence,the priorities should be fixed taking into account the existing financial and physical resources in the economy.The main part of planing is to set the priorities.