Question Answers Class 11 Chapter 10 Economics Maharashtra Board

Economic planning in India

EXERCISE

Q. 1. Choose the correct option:

1. Statements that are true about the Planning Commission:
a) Planning Commission was established in 1950.
b) The Prime Minister is the Ex-Officio Chairman of Planning Commission.
c) Economic planning is a time-bound programme.
d) Economic planning is based on predetermined objectives.
Options:
1. a and b
2. a, b, c, and d
3. a and c
4. None of these

Answer: 2) a, b, c, and d
Explanation: All the statements are true. The Planning Commission was established in 1950, the Prime Minister is its Ex-Officio Chairman, economic planning is time-bound, and it is based on predetermined objectives.

2. Statements that are incorrect regarding India’s five-year plans:
a) The main objective of the first five-year plan was the development of agriculture.
b) Social welfare and poverty eradication were the prime objectives of the seventh five-year plan.
c) By the second five-year plan, focus increased on faster, inclusive growth.
d) Development of both agriculture and industry were the main objectives of the third five-year plan.
Options:
1. a
2. a, b, and d
3. c
4. b and d

Answer: 3) c
Explanation: Statement c is incorrect because the second five-year plan focused on the development of heavy industries, not faster, inclusive growth (which was a later objective, e.g., in the 11th and 12th plans). The other statements are correct as per the table provided.

3. Identify the correct pairs from the given options:

Options:
1) 1-c, 2-a, 3-d, 4-b
2) 1-d, 2-b, 3-a, 4-c
3) 1-d, 2-c, 3-b, 4-a
4) 1-b, 2-d, 3-c, 4-a

Answer: 3) 1-d, 2-c, 3-b, 4-a
Explanation:
Economic Planning is a time-bound programme (d).
The Twelfth Five-Year Plan aimed for fast and sustainable growth (c).
NITI Aayog is a think-tank group of the Indian Government (b).
The NITI Aayog Vice-Chairperson is selected by the Prime Minister (a).

4. Choose the correct statement:
Statement 1: NITI Aayog takes note of dynamic change in the Indian economy.
Statement 2: Considering the economic, social, and technological differences in underdeveloped districts, the body plans to implement various programmes and bring about economic changes.
Options:
a) Statement 1 is correct
b) Statement 2 is correct
c) Statement 2 is the result of Statement 1
d) There is no relation between Statement 1 and Statement 2

Answer: c) Statement 2 is the result of Statement 1
Explanation: NITI Aayog’s ability to adapt to dynamic economic changes (Statement 1) enables it to plan and implement programmes for underdeveloped districts (Statement 2), making Statement 2 a result of Statement 1.

Q. 2. Give economic terms:

1. Conscious and deliberate choice of economic priorities by some public authority.
Answer: Economic Planning
Explanation: As per Mrs. Barbara Wooten’s definition, economic planning involves a deliberate choice of economic priorities by a public authority.

2. A group of people called forth by the government to discuss various problems and also try to find solutions to them.
Answer: Think-Tank
Explanation: The document defines a think-tank as a group of experts gathered by the government to address problems and propose solutions, as exemplified by NITI Aayog.

Q. 3. Identify and explain the concepts from the given illustrations:

1. Sayali’s mother maintains a book of accounts for household purposes and plans the expenditure accordingly.
Concept: Economic Planning
Explanation: Economic planning involves setting objectives and allocating resources systematically to achieve them. Sayali’s mother plans household expenditure by maintaining accounts, which is a small-scale example of economic planning.

2. Ramabai gets a subsidy on domestic LPG directly transferred to her bank account.
Concept: Direct Cash Transfer
Explanation: The 12th Five-Year Plan aimed to shift subsidies to direct cash transfers using the Aadhaar platform. Ramabai receiving an LPG subsidy directly in her bank account illustrates this concept.

3. To solve classroom-related issues, the teacher forms a group of students. This group discusses the problems and finds solutions to it.
Concept: Think-Tank
Explanation: A think-tank is a group formed to discuss problems and find solutions. The group of students formed by the teacher to address classroom issues functions like a think-tank.

Q. 4. Answer the Following:

1. Explain the features of Economic Planning.
Answer: Economic planning has the following features:

• Central Planning Authority: A body like the Planning Commission or NITI Aayog undertakes planning.
• A Survey: A comprehensive study of human and natural resources is conducted.
• Objectives: Plans are based on realistic and flexible goals.
• Priorities and Targets: Priorities are set for key sectors, and targets are specific steps to achieve objectives.
• Mobilisation of Resources: Funds are raised through taxation, savings, public debt, etc.
• Plan Period: Plans typically span a fixed period, e.g., five years in India.
• Evaluation: Periodic reviews, like mid-term appraisals, ensure necessary adjustments.
• Continuous Process: Planning is ongoing to support economic development.
• Co-ordination: Planning involves collaboration between the central and state governments.
• Flexibility: Plans are adaptable to changing needs during implementation.

2. Explain the targets of the 12th Five-Year Plan.
Answer: The targets of the 12th Five-Year Plan (2012–2017) were:

• Economic Growth: Achieve an 8% real GDP growth rate, 4% agricultural growth, 10% industrial growth, and higher state-level growth than the 11th Plan.
• Poverty and Employment: Reduce poverty by 10% and create 50 million non-farm jobs.
• Education: Increase mean years of schooling to seven, improve access to higher education, and eliminate gender/social gaps in school enrolment.
• Health: Reduce the total fertility rate to 2.1% and halve undernutrition in children aged 0–3 years (per NFHS-3 levels).
• Infrastructure: Increase investment in infrastructure to 9% of GDP, connect all villages with all-weather roads, and achieve 70% rural television/telephone density.
• Environment and Sustainability: Increase green cover by 1 million hectares annually.
• Service Delivery: Provide banking access to 90% of households and shift subsidies to direct cash transfers using Aadhaar.

3. Explain the structure of NITI Aayog.
Answer: The structure of NITI Aayog, as per the resolution of January 1, 2015, and its amendment, is:

• Governing Council: Includes Chief Ministers of all states and Governors of Union Territories.
• Regional Councils: Formed to address specific regional issues, involving multiple states.
• Special Invitees: Experts and specialists nominated by the Prime Minister.

Organisational Framework:

• Chairperson: Prime Minister of India.
• Vice-Chairperson: Appointed by the Prime Minister.
• Full-Time Members: Five members.
• Part-Time Members: Two members.
• Ex-Officio Members: Up to four Union Council of Ministers, nominated by the Prime Minister.
• Chief Executive Officer (CEO): Appointed by the Prime Minister, with the rank of Secretary to the Government of India.
• Secretariat: As required.

4. Explain the functions of NITI Aayog.
Answer: The functions of NITI Aayog are:

Shared National Agenda: Develops a vision for national development with state involvement, creating a framework for the Prime Minister and Chief Ministers.
States’ Best Friend at the Centre: Supports states by coordinating with ministries, advocating their ideas, and providing consultancy and capacity-building.
Decentralized Planning: Promotes a bottom-up planning model, starting from villages to the national level.
Knowledge and Innovation Hub: Collects and promotes best practices in governance through a resource centre.
Monitoring and Evaluation: Tracks policy implementation and evaluates outcomes to improve efficiency and enable data-driven decisions.
Co-operative and Competitive Federalism: Encourages state participation in national policy formulation and time-bound target achievement.
Other Functions: Includes inter-consultancy, conflict resolution, and technological upgradation.

5. Distinguish between Planning Commission and NITI Aayog.
Answer:

Q. 5. State with reasons whether you agree or disagree with the following statements:

1. State governments have a more significant role to play under NITI Aayog.
Answer: Agree
Reason: NITI Aayog promotes cooperative federalism, involving states actively in policy formulation and implementation. Unlike the Planning Commission, where states had limited roles (e.g., in the National Development Council), NITI Aayog’s Governing Council includes Chief Ministers, ensuring states have a greater say in national development.

2. Functions of the Planning Commission have been transferred to NITI Aayog.
Answer: Disagree
Reason: The Planning Commission had the power to allocate funds and frame policies, while NITI Aayog is a think-tank that advises and supports states without direct fund allocation or policy-making authority. Thus, the functions have not been fully transferred; NITI Aayog has a different role focused on cooperative federalism and policy guidance.

3. The objective of the 12th Five-Year Plan was to achieve faster, sustainable, and inclusive growth.
Answer: Agree
Reason: The 12th Five-Year Plan (2012–2017) explicitly aimed for “faster, sustainable, and more inclusive growth,” as stated in the document. It focused on economic growth, poverty reduction, education, health, and environmental sustainability to achieve these goals.

Q. 6. Read the following passage carefully and answer the questions:
Passage:

The Finance Minister of the Central Government presents the Union Budget before the Parliament during the month of February every year. The budget, also referred to as the annual financial statement, reflects the estimated receipts and expenditure of the government for a particular financial year that begins on the 1st of April and ends on 31st March. Changes in the tax structure are suggested in the budget. Besides this, provisions are also made for allocating expenditure on defence, education, research, and development, etc. The date for presenting the budget has been shifted to the 1st of February every year. This enables the generation of funds well in advance prior to the commencement of the financial year.

1. Where is the Union Budget usually presented?
Answer: The Union Budget is usually presented before the Parliament.

2. What all aspects are considered while preparing the budget?
Answer: The budget considers estimated receipts and expenditure, changes in the tax structure, and allocations for sectors like defence, education, research, and development.

3. Why is the date for presenting the budget shifted to the 1st of February?
Answer: The date was shifted to the 1st of February to enable the generation of funds well in advance before the financial year begins on April 1.

4. Explain the term ‘budget’.
Answer: A budget is an annual financial statement that outlines the estimated receipts (income) and expenditure (spending) of the government for a financial year, from April 1 to March 31. It includes tax structure changes and allocations for various sectors.