(1) To make assessment of the state resources and formulate plans for the most effective and balanced utilization of these resources.

(2) To determine plan priorities of the state within the framework of the priorities of the National Plan.

(3) To assist the district authorities in formulating their development plans within the sphere in which such planning is considered to be useful and feasible and to coordinate these plans with the state plans.

(4) To identify factors which tend to retard the economic and social development of the state and determine the set of conditions for successful execution of the plan.


(5) To review the progress of implementation of the plan programmes and recommend such adjustments in policies and measures as the review may indicate.

Planning process at the state level

(1) States initiate advance action on plan formulation even before the guidelines of the Planning Commission on the preparation of five-year plans are received. Different department s of the state governments are involved in formulating broad parameters of the state plans.

(2) The States, in response to call from the Planning Commission, send their suggestions, which form the base of the approach paper for the national plan.


(3) After the approach paper, prepared by the planning commission, is approved by the NDC, it forms the basis on which states are required to formulate their draft five-year plans in accordance with the objectives and strategies State Planning Board holds continuous discussions with other state departments and district and regional planning agencies on the one hand and with the central working groups, the Planning Commission and the central ministries on the other hand.

(5) The state draft plan is then discussed at the level of the central working groups and the Planning Commission. The proposals are approved/modified by the Planning Commission, keeping in view of the national and the state priorities and resources.

(6) The Planning Commission prepares the draft national plan and it is discussed in the NDC.

(7) With the approval of the NDC, the plan gets ready for endorsement by the Union Cabinet and the Parliament.


The whole process of the formulation of a five-year plan takes about two years. 5.7