Which of the following Five-Year Plan was designed by DR Gadgil?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Third
- Till the Third Five Year Plan i.e. 1961-66 and again till 1966-1969, the Center had no fixed formula for giving grants to the states.
- Till that time only plan based grants were given.
- While formulating the formula of central assistance in 1969, the Fifth Finance Commission recommended D.R. Approving the Gadgil formula, special category status was given to three states – Assam, Nagaland and Jammu and Kashmir.
Dr. Gadgil Formula:
- The resources that are left after meeting the requirements of the special category states will be allocated 60% on the basis of population, 25% on the basis of per capita income of the state, 7.5% on the basis of fiscal performance and 7.5% on the basis of special needs of these states. Is distributed depending on the circumstances.