Planning is often considered as something which should be based on a given policy. However, the type of corporate planning which is known as strategic planning aims at providing a basis for business policy and is thus a form of policy analysis. This paper examines the requirements which can be put on planning in the public sector so as to make it a basis for policy decisions. A main thesis is that it is of considerable importance to distinguish between strategic and tactical (operational) planning and not to use tactical planning methods in strategic planning as planning experts hereby can limit the policy options which should be open to policy-makers.