By G. Ram Reddy, V. V. Ramanadham
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The areas given special attention and the degrees of emphasis vary widely. In India, it is on the resource mobilisation; in the United Kingdom and Korea, it is on external financing and the limits on borrowing; and in Tanzania, on project financing. Thus, budgetary allocations tend to develop their own bases and narrow rationality rather than concern with the overall performance of enterprises. Fifth, the unpredictability of government allocations is not mitigated by the adoption of constructive approaches on the part of enterprises.
There is frequent duplication of effort between the sponsoring ministry and finance and planning agencies. Sponsoring ministries have a number of enterprises that cover various fields but lack specialized staff to review the enterprise budgets. These factors have affected the approaches of government and enterprises. The ability of a central agency or its staff to judge the quality and practicability of thousands of plans covering complex areas is severely 13. Heath, Management in Nationalised Industries.
Corporate planning, it is true, even in countries with an interventionist style of government, should assure to management the unrestricted exercise of its authority over a substantial part of its present supposed area of autonomy; however, it would confine this authority within the limiting framework of a set of policies and objectives that government would specify—it is to be hoped, of policies and objectives government would specify in the light of informed and unconstrained discussion with the management.