ECONOMIC PLANNING AND DEVELOPMENT FOR THE SUSTAINABLE DEVELOPMENT IN DEVELOPING COUNTRIES INDIA

Government as an agent of economic planning will be the first area of discussion followed by public choice theory; rationale for public policy; public policy and provision of public and local goods; provision of infrastructure facilities; public policy and allocation of resources and inequalities; problems of regional imbalances and disparities and policy initiatives for balanced regional growth. Planned economy (or directed economy) is an economic system in which the state or workers' councils manage the economy . It is an economic system in which the central government makes all decisions on the production and consumption of goods and services. Its most extensive form is referred to as a command economy, centrally economy, or command and control economy . In such economies, central economic planning by the state or government controls all major sectors of the economy and formulates all decisions about the use of resources and the distribution of output. Planners decide what should be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives. Planned economies are in contrast to unplanned economies, such as a market economy , where production, distribution, pricing, and investment decisions are made by the private owners of the factors of production based upon their own interests rather than upon furthering some overarching macroeconomic plan. Less extensive forms of economies include those that use indicative planning , in which the state employs influence, subsidies, grants, and taxes, but does not compel. This latter is sometimes referred to as a planned market economy. Key words: Economic Planning, Planned Market Economy, Central Economic Planning , Indicative Planning, Public Choice Theory, Rationale for Public Policy, Bureaucracy.