Practicing Success
Read the paragraph given below and answer, the following question: As in the USSR, the planning commission of India opted for Five Year Plans (FYP). The idea is very simple the government of India prepares a document that has a plan for all its income and expenditure for the next five years. Accordingly the budget of the central and all the state governments is divided into two parts 'non-plan' budget that is spent on routine items on a yearly basis and 'plan' budget that is spent on a five year basis as per the priorities fixed by the plan. A five year plan has the advantage of permitting the government to focus on the larger picture and make long term intervention in the economy. |
'PLAN BUDGET' is spent on a : |
Yearly basis Five year basis Three year basis Two year basis |
Five year basis |
The correct answer is option (2) - Five year basis As per the passage: Accordingly the budget of the central and all the state governments is divided into two parts 'non-plan' budget that is spent on routine items on a yearly basis and 'plan' budget that is spent on a five year basis as per the priorities fixed by the plan. A five year plan has the advantage of permitting the government to focus on the larger picture and make long term intervention in the economy. |