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Exercises · Q2

Q.How do State Plans fit within India's national planning system? Illustrate with reference to Manipur.

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Two levels of planning. India's Constitution divides subjects between the Union and the states, so planning was organised at two levels:

  • The Central (national) plan dealt with subjects handled by the Union government.
  • Each state prepared its own State Plan for subjects within its responsibility — agriculture, irrigation, roads, education, health, rural and urban development.

How the levels fit together. State Plans were not independent of the national plan; they were framed within the priorities of the current Five Year Plan while being adapted to each state's conditions. The Planning Commission reviewed and approved state plans and helped decide the central assistance each state would receive.

Illustration — Manipur. Manipur prepared its State Plan in line with national goals but shaped to its own realities — a small, landlocked, hilly North Eastern state. Its plans stressed agriculture, roads and power, handloom and handicrafts, and education and health. Because Manipur raises limited revenue of its own, a large part of its plan spending was financed by central transfers — Normal Central Assistance, scheme-linked assistance and special North-East assistance. This makes central support a defining feature of Manipur's plan finances.

✓Final answer

State Plans are the state-level part of India's planning system: each state plans for subjects in its charge within the national framework. Manipur's plans focused on agriculture, infrastructure, crafts and social services suited to its conditions, and were financed largely by central transfers because of the state's narrow own-revenue base.

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