Explain The Financial Resources For The Plan?


Answer:
The economic planning is aimed at utilizing the resources in such a way that the pre-determined objectives are attained. The authentic resources of a country consists of manpower, natural resources, skill, technology, raw material, wherewithal goods and administrative and entrepreneurial abilities etc. in a money reduction, all such resource, the purchasing power is required. It is the level of financial resources which provides the purchasing power so that aims and objectives of the plan could be met. There are two resources availability, internal resources and external resources.

The internal sources consist of real domestic stash. The internal savings may consist of private as well as public savings. The private money may consist of personal savings as well as corporate savings. In overnight case UDCs like Pakistan the level of private savings is completely low because of low incomes, international demonstration effects and reduces investment opportunities.

The external resources play an important role contained by the developmental plan. The foreign aid is of two type, non- financial aid and financial aid.The non-financial aid or physical aid consists of technical aid, commercial aid and commodity aid. While the financial aid consists of government to government loans, the loans from the international institution and agencies and international grant.

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