In the given question, a statement of Assertion is followed by a statement of Reason. Mark the correct answer.

Assertion: In 1966, the government of India decided to take a ‘plan holiday’.
Reason: India was facing an acute economic crisis because of the wars and the diversion of resources on defense.

Both the Assertion and the Reason are correct and the Reason is the correct explanation of the Assertion.

The Fourth Plan was due to start in 1966, by this time, the novelty of planning had declined considerably, and moreover, India was facing an acute economic crisis.
The government decided to take a ‘plan holiday’.
Thus, the fourth FYP could only get implemented by 1969.

India had a war with China in 1962 and later with Pakistan in 1965. Expenditure was increased significantly on defence so India took a plan holiday.