Economic planning differs depending on economic system under which economic planning performed mostly differs on objectives/goals and who make that plans in the following ways.

• Planning in capitalist economic system — Under capitalist economic system no central planning, planning are done by individual firm/ company/ person through price mechanism. Those means price mechanism influence allocation of economic resources and influence the process of making decision of what to produce to whom to produce where to produce etc. under capitalist economic central government play the role of providing conducive environment or indication to the private sector but not ready to made decisions. Instead concerning with protection of order and economy at large most of plan in capitalist is partial plans.

• Planning in socialist economic system — In socialist countries there is central planning that is government concerned with formulation and implementations of various economic planning on behalf of its citizens. Most of plans in socialist is comprehensive in nature they cover the entire nation because the aim of plains is to improve living standard of all people or equitable development.

• Planning in mixed economic system — Under mixed economic system there are both government plans and price mechanism. That means government plans allocation of resources in some area while individuals also make decision /plains for their firms. Under this system government plans for improvement of an economy and creating economic stability while private company/ firm plans for their own benefits especially for profits maximization.

Classification by coverage

1. Comprehensive planning — This is the type of planning in which all sector in an economy are taken into consideration and conducted by central government in order to meet the entire economy. This planning takes into amount sectorial priority and interdependence. Such plans cover both private and public sector. Example of this plan is annual national budget.
2. Partial planning — The alternatively known as (secretarial planning). This is the types of planning that cover only one sector in an economy that means government plans to develop and influence only one sector in an economy. Example of such planning is basic industrialization plan/ program of 1995 – 2000 this is the plan in which government intends to industrial sector in an economy over 25 years.

Classification of planning according to time taken to accomplish intended objectives

1. Short-term planning — This is the type of planning that cover I take a period up to 2 years for the objectives or intended goals to be achieved for example annual budget which cover 1years of implementation.
2. Medium term planning — This is the type of plans that take a period of 2 up to 7 years for the objectives to be achieved. For example villagelization of 1972.
3. Long term planning — This is the type plans that take a duration of time or long term for objectives to s 20 years or beyond that period. Example of such plan is import substitution strategy of 1995- 2000.

Other classifications

1. Centralized planning — This is the type of government planning in which plans / objectives are formulated by the central government but implementation done by local government or societies. That means central government form plans then direct it to local government and society for implementation to achieve predetermined goals.
2. Decentralized planning — This also is the government plans formulated by local government but implemented by central government. That means local government formulate objectives/ goals and send off to central government in which central government direct and influence resources in order to implement such plans.
3. Indicative planning/ directive planning — Is the type of economic planning in which central government prepare a plan of indicating all sectors /firms what and how to allocate resources and provide conducive environment on what to do. Indicative planning most occurs under capitalist economy in which government indicate private sectors what to do / how to make decisions and government are not concerned with ready maker decision instead provide conducive environment for private sector and order ruling its citizen.
4. Authoritarian planning — This is the type of economic planning which is prepared by government and also implement the planning. Thus plans are more comprehensive, systematic, and rigid but more efficient
5. A democratic planning — This is the type of planning which is prepared by expert body called planning authority outside the government. It is based on the system of free market economy.

When government formulates economic planning there are several objectives, the government would like the country to achieve, these objectives may include the following:-

1. Achieve rapid economic growth and development. Economic planning seeks to stimulate sustainable growth by prioritizing sectors such as industry, infrastructure, and technology to enhance productivity and boost national income.
2. Increase employment levels and reduce unemployment. Governments aim to create job opportunities by fostering investments, supporting labor-intensive industries, and promoting policies that encourage entrepreneurship and skill development.
3. Reduce poverty and income inequality. A key goal is to improve the living standards of the population, particularly those in disadvantaged groups, through income redistribution, social welfare programs, and inclusive economic policies.
4. Maintain price stability and control inflation. Economic planning works to prevent hyperinflation or deflation by managing inflation rates through monetary policies, fiscal discipline, and regulatory measures to ensure stable prices.
5. Achieve a favorable balance of payments. Governments aim to maintain equilibrium between imports and exports, reduce trade deficits, and promote foreign exchange reserves through policies that encourage exports and discourage excessive imports.
6. Promote a diversified and self-reliant economy. Economic planning focuses on reducing dependence on foreign aid or imports by developing diverse industries, investing in technology, and promoting local production in key sectors such as agriculture, manufacturing, and services.

The planning supposed to be continuous process and the main stages / implications of economic planning are:-

1. Formulation of objectives or goals to be achieved. The first stage involves clearly defining the development objectives that the country aims to accomplish. Planners set specific, measurable goals that align with national priorities and ensure that the planning process has a clear direction.
2. Plan formation. This stage involves crafting a detailed blueprint for achieving the set objectives. It includes identifying key actions, setting realistic targets, prioritizing initiatives, and developing strategies for implementing the plan. It ensures that every aspect of the plan is aligned with the country's needs and available resources.
3. Mobilizing financial and other resources. To effectively implement the plan, it is crucial to gather and allocate the necessary financial, human, and material resources. This stage includes securing funding through both domestic and foreign sources, as well as organizing manpower, technology, and other essential resources.
4. Plan implementation. During this phase, the plan is put into action. It involves setting up the necessary institutions, organizations, and administrative structures to oversee the execution of the plan. Effective coordination and management are critical to translating the objectives into tangible results.
5. Plan evaluation. Regular assessment of the progress made towards the set goals is essential. This stage involves monitoring the outcomes, identifying challenges, and revising the plan as needed. Evaluation ensures that the plan remains relevant and adaptable to changing circumstances, leading to continuous improvement in future planning efforts.

Any economic plan should have the following features in common:

1. Plan objectives/ goals. Planning should attempt to define goals/ objectives as they relate to future development of the economy.
2. Plan policies and strategies. A development plan should set out strategies and policies this is the means by which objectives can be achieved which are normally translated into specific targets.
3. Comprehensiveness. A development plan must cover the whole economy or sometime may identify sector in an economy (partial)
4. A plan period. A good economic plan typically covers a specific period of time. Let say one year or 5 year for objectives to be accomplished that means short run or long run period.
5. A planning machinery. This is the number of ministries, institutions, firms or individuals even authority established for the purpose of formulating, execution and evaluation of the economic plan.
6. Internally consistent. The economic plans attempts to presents a centrally coordinated, internally consistent set of principle and policies chosen as optional means of implementing the strategy and objective.

Note; among all above characteristics of the successfully economic plans must have enough resources both human, financial and other resources.

1. Misallocation of economic resources. Economic planning can lead to inefficient resource allocation, where resources are directed to unproductive sectors or areas that do not have high demand, often due to political motives rather than economic necessity.
2. Discouragement of competition. Centralized planning may reduce competition among producers, leading to inefficiencies in production, lower quality products, and inadequate services. This lack of competition stifles innovation and productivity.
3. Increased government expenditure and financial burden. The cost of implementing and overseeing economic plans can be substantial, putting a strain on the government's finances. The resources required for planning, such as administrative expenses and investments in infrastructure, may increase the overall fiscal burden.
4. Encouragement of bureaucracy and decision-making delays. Planning often involves complex processes and large administrative bodies, which can lead to bureaucratic delays. Slow decision-making and excessive red tape can hinder the timely achievement of planning objectives.
5. Failure of plans, leading to wasted resources and time. Plans can sometimes fail to meet their objectives, resulting in a waste of valuable time, resources, and effort that were put into their formulation and execution.
6. Increased public debts and dependence on external aid. In many developing countries, the implementation of economic plans relies heavily on borrowed funds or grants from foreign donors. This can lead to rising public debt and increased economic dependence on external sources, which may hinder long-term self-sufficiency.

1. Efficient allocation and utilization of economic resources. Economic planning ensures that resources are allocated effectively to productive sectors, minimizing waste and ensuring that the available resources contribute optimally to the economy.
2. Equitable distribution of wealth. Planning facilitates the distribution of wealth in a way that promotes income equality. By targeting resources towards areas of need, planning helps mitigate income disparities and promotes social equity.
3. Optimum utilization of scarce economic resources. Planning ensures that scarce resources are used as efficiently as possible, maximizing output and ensuring the sustainability of production processes.
4. Economic stability and control over instability. Economic planning is a tool for maintaining stability in an economy. It helps in addressing issues such as inflation, unemployment, and trade imbalances, leading to a more stable economic environment.
5. Assistance in seeking foreign aid. Through careful planning, countries can present structured, well-thought-out development programs to potential foreign donors, facilitating access to aid and funding for various development projects.
6. Control of negative externalities. Economic planning can be used to regulate and mitigate the harmful effects of production, such as pollution and environmental degradation, ensuring that economic growth does not come at the expense of the environment.
7. Promotion of sustained economic growth and development. Economic planning is instrumental in fostering long-term growth and development by setting clear goals, prioritizing sectors for development, and ensuring that resources are mobilized to achieve these objectives.
8. Elimination of market failures, especially in providing public goods. Economic planning helps address market failures by ensuring the provision of public goods and welfare services, which are not typically supplied by the market due to their unprofitability but are essential for societal well-being.
9. Control over quality and standards of goods and services. Planning allows the government to set and maintain standards for goods and services, ensuring quality control and broadening consumer choices while maintaining high levels of consumer protection.

A development plans. Is a wide range of document of the government formulated in order to achieve long-term objectives in which primary objectives is to improve economic development.

Development plan mostly classified into three main levels:

1. Macro level planning
2. Secondary level planning
3. Tertiary level planning

Macro level planning

This is government plan which take into consideration the whole economy i.e. all economic variables. In developing country these plan cover a time of about 4 to 5 and above years.

Macro planning involves Annual plans and perspective plan in which perspective plans cover a long period of time.

Secondary level plans

These are those plans that do not cover the whole country they may cover either one sector or Region this includes

1. Secretarial plan — this is the detailed plan for a specific sector of an economy for example plans for improvement of agricultural sector.
2. Regional plan — this is economic plan which focus its intention to a particular region or area within a country.

Tertiary level plans

This is the plans which deal with identification of possible projects informs of cost and benefit and their implementation so as to improve performance of that project.

Tertiary plans either natively called projects plans

The structure of planning in Tanzania is two ways in the sense that, the economic plans are either initiated or formulated at the top by the government authorities and routed downwards for implementation with or without modification (centralized planning)

In the other hands other economic plans are initiated originate from the button and they are routed upwards for implementation (decentralized planning). All these plans are well coordinated and integrated and prepared for the whole economy.

At the present the planning process are under the ministry of planning and once planning have been worked out by the planning expert of the government, they need to be discussed and get approved by parliament which then endorse the resources which are necessary for the implementation of the plan. And during the course of implementation the economic plan are evaluated constantly so as to assess its performance in order to amends necessary things for the aim of achieving the desired goals or objectives.

Since independence, Tanzania has passed through two main phases of economic planning

1. Phase I
2. Phase II

Phase I: Economic plans

The first phase comprise of all the economic plans from 1961 to early 1980's these plans were emphasis on ''equity" as were guided by the Arusha declaration

The phase I economic plan were aimed at fighting the main three things, illiteracy, disease and poverty.

Since Arusha declaration aimed at converting Tanzania into socialist and self-reliant country hence various measure were taken to ensure all major means of production are owned by the government. Therefore consisted of the first, second and third five years development plans. In general these plans were aimed at rising per capital income so as to improve living standard, man power development, rising life expectancy so as to create self-reliant.

Phase II: Economic development plans

These plans cover all plans that take place between 1980's to present, the phase II economic plans emphasize efficient of the government and performance of the economy. The phase two economic plans are in hand and in guidance of international done such as IMF and World Bank. The phase II economic survival programmer (NSSP) structural adjustment programmer (SAP'S) etc.

1. Insufficient knowledge and lack of skilled planners. A significant challenge in planning is the shortage of trained personnel who possess the expertise to design and implement effective strategies, leading to inefficiency in both the planning and execution phases.
2. Dominance of large private sectors in the economy. The government often lacks sufficient influence over large private enterprises, which may operate independently of national development plans. This creates a gap between public policy and the reality of private sector actions.
3. Inefficient planning machinery and weak institutions. The planning authorities and institutions responsible for formulating and executing policies often lack coordination and resources, hindering the successful implementation of development plans.
4. Lack of reliable information and statistical data. Effective planning requires accurate, up-to-date data. The absence of reliable statistical information prevents planners from making informed decisions, leading to poorly designed and ineffective policies.
5. Political instability and administrative uncertainty. Frequent changes in government, political unrest, and regime changes disrupt the continuity of planning, often leading to shifts in national goals and priorities, which complicates the implementation of long-term development projects.
6. Dependence on foreign aid and donor conditions. While foreign aid can be crucial for financing development, it often comes with strings attached, such as donor-imposed conditions that may not align with national priorities. Delays in receiving aid or a mismatch in donor requirements can derail government plans.
7. Absence of specific and workable policies, coupled with poor coordination among planners. A lack of well-defined, actionable policies and ineffective coordination between different government departments often leads to fragmented planning and execution, diminishing the effectiveness of development strategies.
8. Weak government participation and lack of political will. If the government and political leaders do not actively support and engage with the planning process, there is little chance for successful implementation. Without strong political will, development plans often falter.