The correct answer is Option 4. Explanation & Key Takeaways: In order that economic planning might be successful, certain essential conditions are to be fulfilled. Well-Defined Aims and Objectives: • Every plan must be associated with certain well-defined aims and objectives. • In democratic planning there must be a large measure of agreement in the community with regard to these aims and objectives. Emerge Out of the Conscious Decisions: • Planning must emerge out of the conscious decision of a determinate authority. Purposive Direction: • In a federal structure, where there is the diffusion of power and responsibility, there must be an overall unity of policy. • The purposive direction, which planning involves, must come from the Central Government. Efficient Administrative System: • There must be an administrative system with efficiency and unimpeachable integrity, capable of discharging its responsibilities in connection with the execution of the plan. Carefully Fix the Targets: • The planning authority must carefully fix the targets without illusions as to what is possible. If the targets are fanciful, the whole plan will be fanciful. • And this is as true whether the targets are too large or too small. Planners, who promise more than they can perform, throw everything out of gear, so that the economy might use as well not be planned at all. • Over-fulfilment is just as much a sign of bad planning as is under-fulfilment.