Central planning authority
Topic: Economic Planning in India: Goals, Models and Import Substitution · NCERT: Class 9, Ch 8 "Building Blocks in Economics: The Problem of Choice"
Meaning
A central planning authority is the government body that runs a planned economy. It decides what goods are produced, how much of each, how they are made, who gets them and at what price. In such an economy, the state usually owns land, factories, banks and transport. Firms need permits and licences, so competition is weak. There is also little push to improve quality or to innovate.
Example
In the former USSR, this body was Gosplan. It ran the Soviet Union's Five Year Plans from 1928. It tried to fix the output of almost every good. NCERT says this approach did not succeed.
Don't confuse with
- India's Planning Commission (1950): it was only an advisory body. It did not fix the output of every good. Indian planning was indicative: the state set targets for key sectors such as power and irrigation, and left the rest to the market.