Practicing Success
Practicing Success
CUET Preparation Today
Assertion: The Planning Commission of India opted for five-year plans (FYP). |
Both the Assertion and the Reason are correct and the Reason is the correct explanation of the Assertion. Both the Assertion and the Reason are correct but the Reason is not the correct explanation of the Assertion. The Assertion is incorrect but the Reason is correct. The Assertion is correct but the Reason is incorrect. |
The Assertion is correct but the Reason is incorrect. |
•The concept of Five-Year Plans in India was inspired by the Soviet Union's (USSR) central planning system. •Nehru was impressed with the Soviet Union's approach and believed that a similar model could be adapted to India's needs to achieve rapid economic development and reduce poverty. •The idea of the FYP 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: ‘Plan-budget’ and ‘Non-Plan’ budget . •A five-year plan has the advantage of permitting the government to focus on the larger picture and make a long-term intervention in the economy. |
