Following are the characteristics of socialism or planned economy :

• Government Ownership : In a socialist economy, ownership of government exists on all the major resources of production. All the resources of private property and production are nationalized and brought under government ownership. The resources are used in a planned manner for the motive of maximizing total welfare. Every citizen works while remaining under the influence of the government.
• Centralized planning : There is concrete arrangement of centralized planning in a socialist economy. The economy is run through centralized planning for the fulfillment of fixed objectives.
• Objective of maximizing social welfare : In socialist economy, the objective of the government is performing maximum social welfare. Personal profit is not important here. 
• Lack of exploitation : In socialist economy, exploitation of person is not done because the government itself runs the economy and its ultimate objective is maximum social welfare.
• Equality : In socialist economy, the entire property of the state is owned by the government. Private property does not exist and the objective of earning maximum profits is also not there, so there is no exploitation and equality is established. 
• Full employment : A major characteristic of socialist economy is that full employment is found in this economy. Due to efforts made for optimum arid best use of human resources, unemployment is not even visible here. Full employment exists in the economy.
• Concrete objectives : Socialist economy works with certain objectives. Objectives of the economy are fixed. The society as a Whole or the government decides these objectives and planned efforts are made to achieve them. Rapid industrialization, increase in standard of living, establishment of full employment, narrowing the inequality of wealth and income, etc. are some of the major objectives of socialist economy.
• Lack of competition : As the government is the major entrepreneur and there is centralized control in socialist economy, lack of competition is found here. Instead of cutthroat competition, government monopoly is visible here. 
• Development of heavy and infrastructural industries : Due to complete control and planning in socialist economy, heavy industries and infrastructural industries undergo rapid development. 
• Social Security : Due to government control in socialist economy, every individual gets social security from hunger, illness, accident, etc. The objective of socialism is maximum social welfare.