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| Planning objectives | Plan objectives |
| 1. Planning objectives are long term objective, they are to be achieved over 20 years. | 1. Plan objectives are to be in short term of 5 years |
| 2. They are general goals. | 2. They are specific goals |
| 3. They are common to all plants | 3. They vary form plan to plan |
| 4. They aim at structural changes | 4. They aim at quantitative change |
| 5. They are also called perspective plan | 5. They are also called five year plan. |
| 6. Their objectives are related to growth modernisation, self-reliance etc. | 6. They are different in every five years plan |
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The transaction carried by Monetary Authority of a country which causes change in official reserves is called official reserve transaction. It includes purchase or sale of currency in exchange market for foreign currencies or other assets. The reserves are drawn by selling foreign currencies in exchange market during deficit and foreign currencies are purchased during surplus. When the official reserves increase or decrease it is called overall balance of payment surplus or deficit respectively.
The importance of official reserve transactions in balance of payment is –
a) Purchase of own currency buy a country is a credit item in the balance of payments and vice a versa.
b) It helps to adjust the deficit or surplus in balance of payments.

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