What is the advantage of a five year plan?

The correct answer is Option (3) → To make long term intervention in the economy according to priorities fixed by the plan

Option (1) To allocate resources in such a way that class-based prosperity is possible. — Incorrect. Planning was meant for the development of the whole economy; nothing in it aims at prosperity for one class.

Option (2) To mainstream the resource rich states. — Incorrect. The plan sets national priorities for spending; it is not a scheme to favour resource rich states.

Option (3) To make long term intervention in the economy according to priorities fixed by the plan — Correct. 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, with the plan budget spent on a five year basis as per the priorities fixed by the plan.

Option (4) To identify those states where democratic institutions are eroding. — Incorrect. A plan sets out the government’s income and expenditure for the next five years, so it is about the economy, not about checking democratic institutions in the states.