Read the following passage and answer the given questions.

The idea of planning as a process after independence of rebuilding economy led to the establishment of Planning Commission in 1950. But in era of globalisation in 21st Century, Planning Commission was becoming ineffective and irrelevant in coping up with challenges of development. Hence during Independence Day speech on 15 August 2014, Prime Minister Narendra Modi announced about abolition of Planning Commission. NITI Aayog was constituted in place of Planning Commission on 1 Jan 2015 with objective of providing necessary technical advice to Union Government.

After independence Planning Commission adopted model of development that was based on ______.

Socialist Model

The correct answer is option (4) - Socialist Model

In line with the Soviet Union's approach, India's Planning Commission adopted a system of five-year plans (FYPs). The concept is straightforward: the Indian government formulates a comprehensive document outlining its financial projections and allocations for the next five years. This entails dividing the budgets of the central and state governments into two categories: the 'non-plan' budget, which covers annual routine expenditures, and the 'plan' budget, which is allocated over the course of five years based on predetermined priorities set by the plan. By implementing a five-year plan, the government gains the advantage of being able to focus on the broader perspective and make sustained interventions in the economy for long-term development.