1108 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 2&
research must also be encouraged and developed at the same
time to foster the accumulation of basic knowledge and to
supply a sound foundation for national decisions being made
increasingly on rational grounds.
Balances at the stage of production and utilization: An
essential condition for successful planning is to estimate in real
terms the requirements of each project to ensure that right
quantities of materials, machinery and men are available at
the right time at every stage of the implementation of the
project. Also, products and services resulting from the com-
pletion of each project must be promptly and effectively utilised
to promote the execution of other projects and for the progress
of the plan as a whole.
The physical targets of production must be balanced in
terms of physical quantities of raw materials, machinery,
energy, transport etc., and also in terms of man power and
of the flow of money. Incomes are generated in the very pro-
cess of production; and supplies are utilised through market
operations. Planning requires that aggregate incomes should
be balanced with expenditure, savings should match invest-
ments, and the supply and demand of individual goods and
services should be balanced in real terms so as to avoid any
inflationary rise of prices or undesirable shifts in prices. Phy-
sical and financial planning are different aspects of the same
reality.
In India a perspective view of development over a long
period of years began to be taken from the end of 1954. It was
recognised that the targets and the balances of materials and
of man power would be only approximate partly for lack of
information and partly for defects in organisation and imple-
mentation. It was therefore recognised that planning would
have to remain flexible and to enable necessary adjustments
being made almost continuously. At the same time it was
essential to keep in view a wide time horizon of 15 or 20 vears
NT more.
‘151 Mahalanobis II - nag. 6
