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Planning & Development — UPSC Prelims Economy previous year questions

21 solved previous year questions on Planning & Development, papers from 1994 to 2016, drawn from UPPCS, UPSC CSE Prelims, State PCS. Each carries the printed answer key and the explanation from the source compilation.

1. #1UPSC CSE Prelims 2009
   During which Five Year Plan was the Emergency clamped, new elections took place and the Janata Party was elected?
   • AThird
   • BFourth
   • CFifth
   • DSixth
   Answer: (C) Fifth
   Explanation

   S Option c is the correct answ e The Emergency was declared by Indira Gandhl on 25 lasting until 21 March 1977. The Janata Party, of opposition parties, won the 1977 elections. Five Year Plan (1974-79) was terminated during replaced by the short-term Rolling Plan to post-Emergency uncertainties. The Rolling replaced by the Sixth Five Year Plan (1980-85) in 1980. Important Tips Key highlights of the Rolling Plan (1978-1980): Rejection of Fifth Five-Year Plan: The Janata Party government rejected the existing Fifth Five- Year Plan and introduced the Rolling Plan as a more flexible alternative. Three Kinds of Plans: The Rolling Plan comprised three types of plans - First Plan for the current year (annual budget), Second Plan for a fixed number of years (3, 4, or 5 years) that changed as per economic requirements, and Third Plan for long term (10, 15, or 20 years). Flexibility: The Rolling P

2. #2Previous year
   Consider the following statements regarding Indian Planning: 1. The Second Five Year Plan emphasized the establishment of heavy industries. 2. The Third Five Year Plan introduced the concept of import substitution as a strategy for industrialization.Which of the given above is/are correct? [UPSC CSE Pre 2009}
   • A1 only
   • B2 only
   • CBoth 1 and 2
   • DNeither 1 nor 2
   Answer: (C) Both 1 and 2
   Explanation

   Option c is the correct I is correct: The Second Five Year Plan ( 1956

3. #3UPPCS 2016
   In which of the following Five-Year Plans was the Women's Component Plan introduced as a major strategy?
   • ATenth Five Year Plan
   • BEleventh Five Year Plan
   • CNinth Five Year Plan
   • DTwelfth Five Year Plan
   Answer: (C) Ninth Five Year Plan
   Explanation

   Option c is the cone ct 9th Five Year Plan of Government of India, objectives for women; it e nvis aged treaming and also had a new component Plan (WCP), the obj ective of which empowerment by improvi ng the status of women and it was for the first time in history, empowe women was adopted as an objective in the Fi.ve year Plans

4. #4UPPCS 2014
   The document of Twelfth Five Year Plan suggests that the largest expenditure in this plan would be on
   • AFinancial Services
   • BSocial Services
   • CAgriculture
   • DFisheries and Forestry
   Answer: (B) Social Services
   Explanation

   Option b is the correct Twelfth Five Year Plan (2012-2017) allocated share of its expenditure to social services, education, health, and social security. Important Tips Twelfth Five Year Plan (2012-1 7): Key Highlights The last Five-Year Plan had "Faster, More Inclusive and Sustainable Growth" as its theme. Accelerated economic growth: The plan aimed to achieve an average annual growth rate of during the planned period. Employment generation: The plan aimed to create 100 million new jobs during the plan period. Reduction of poverty: The plan aimed to reduce the poverty ratio by during the plan period. Improvement in human development indices: The plan aimed to improve the human development indices such as literacy, health, and nutrition Sustainable development: The plan aimed to achieve sustainable development by promoting economic growth, social justice, and environmental protection. Ag

5. #5UPPCS 2014
   Which Plan among the following declared its objective of self-reliance and zero net foreign aid?
   • ASecond Five Year Plan
   • BThird Five year Plan
   • CFourth Five Year Plan
   • DFifth five Year Plan
   Answer: (C) Fourth Five Year Plan
   Explanation

   Option c is the correct Fourth Five Year Plan (1969-74) was the first plan its objective of self-reliance and zero net The plan was based on the Gadgil formula, on growth with stability and progress towards self reliance. Important Tips Key highlights of the Fourth Plan (1969-1974): Objective: The plan aimed to correct the increasing concentration of wealth and economic power, focusing on growth with stability and progress towards self-reliance based on the Gadgil formula Bank Nationalization: The Indira Gandhi government nationalized 14 major Indian banks to promote financial inclusion and economic control. Green Revolution: The plan advanced agriculture through the Green Revolution, aiming to increase food production and achieve food security. Buffer Stock: The concept of a buffer stock was introduced to ensure food security, and a buffer stock of 5 million tonnes of food grains was en

6. #6State PCS 1994
   The main slogan of the Seventh Five Year Plan was
   • AFood, Work and Productivity
   • BFree education for all children
   • C5 percent growth rate of National percent Income
   • DCommunity Development Programme
   Answer: (A) Food, Work and Productivity
   Explanation

   Option a is the correct main objectives of the Seventh Five-Year Plan establish growth in areas of increasing production of food grains, and through "Social Justice". Important Tips Seventh Five Year Plan (1985-90): Focus on Industrial Productivity: Emphasized upgrading technology to improve industrial productivity and economic growth. Social Justice and Employment Generation: Aimed at increasing economic productivity, food grain production, and generating employment through social justice measures. Thrust Areas: Prioritized agricultural development, anti-poverty programs, ensuring food, clothing, and shelter for all, and making India an independent economy. Self-Sustaining Growth: Aimed to achieve self sustaining growth by Jhe year 2000, with projected labor force and employment growth. Contribution from Voluntary Agencies: Encouraged contributions from voluntary agencies and the genera

7. #7State PCS 2014
   Under which Five Year Plan was the decision to establish a sodalistk p attern of society taken?
   • AFirst Five Year Plan
   • BSecond Five Year Plan
   • CThird Five Year Plan
   • DFourth Five Year Plan
   Answer: (B) Second Five Year Plan
   Explanation

   Option bis the correct the Second Five Year Plan (1956-1961 ), India Mahalanobis model, advocating state intervention to promote long-term economic growth and This plan emphasized the development public sector and rapid industrialization, government's commitment to socialism and of a socialistic pattern of society measures and public sector expansion. Important Tips Key highlights of the Second Five-Year Plan (1956-1961): Focus on Public Sector: Emphasis on developing the public sector and rapid industrialization. Mahalanobis Model: Utilized the Mahalanobis model, an economic development model by Prasanta Chandra Mahalanobis, to optimize investment allocation for long-term economic growth. Import of Capital Goods: Assumed a closed economy centered on importing capital goods Infrastructul'e and Industries: Hydroelectric power projects, five steel plants, and increased coal production were

8. #8Previous year
   During which Five Year Plan, has achieved the growth rate? P.C.S. (Pre) 2013
   • AEleventh Plan
   • BTenth Plan
   • CEighth Plan
   • DFifth Plan (e) Sixth Plan ]
   Answer: (A) Eleventh Plan
   Explanation

   Option a is the correct answer Eleventh Five Year Plan (2007-2012) saw India highest per-capita growth rate of 7 followed the Tenth Five Year Plan (2002-2007) with and Eighth Five Year Plans had per-capita growth and respectively

9. #9Previous year
   In recent plans, certain words/ phrases were used in the title of the plan along with 'growth'. They are inclusive faster more inclusive more sustainable sustainable Which combination is true of the 12th Five Year Plan (2012-17)? CDS (I)
   • A1, 2 and 3
   • B1, 4 and 5
   • C2, 3 and 4
   • D1, 2 and 4
   Answer: (C) 2, 3 and 4
   Explanation

   Option c is the correct 12th Five Year Plan (2012-17) was titled "Faster, and Sustainable Growth."

10. #10UPSC CSE Prelims 2016
    With reference to 'Financial Stability and Development Council', consider the following statements: 1. It is an organ of NITI Aayog. 2. It is headed by the Union Finance Minister. 3. It monitors macroprudential supervision of the economy.Which of the statements given above is/are correct?
    • A1 and 2 only
    • B3 only
    • C2 and 3 only
    • D1, 2 and 3
    Answer: (C) 2 and 3 only
    Explanation

    Option c is the correct 1 is incorrect. Financial Stability Council is an apex-level body constituted government of India. It is not an organ of NITI 2 is correct. FSDC is headed by the Minister. The secretariat of the council would be Department of Economic Affairs, Ministry of Finance Statement 3 is correct. Financial Stability and (FSDC) functions to promote along with monitoring macro of economy. Important Tips The Financial Stability and Development Council (FSDC) has been constituted vide GOT notification dated 30th December, 2010. The Council is chaired by the Union Finance Iviinister and its members are Governor, Reserve Bank of India; Finance Secretary and/ or Secretary, Department of Economic Affairs; Secretary, Department of Financial Services; Chief Economic Adviser, Min is try of Finance; Chairman, Securities and Exchange Board of India; Chairman, Insurance Regulatory and De

11. #11Practice set
    Consider the following statements with reference to NITI Aayog (National Institution for Transforming India): 1. Governing Council of the NITI Aayog comprises of the Governor of all the States and Lt. Governors of the Union Territories. 2. Regional Council comprises of the Chief Ministers of States and UTs with legislature and Lt. Governors of all other Union Territories in the region. 3. One of its objectives is to develop mechanisms to formulate credible plans at the village level. 4. Chief Executive Officer of NITI Aayog is appointed by the President.How many of the above given statements are correct?
    • AOnly one
    • BOnly two
    • COnly three
    • DAll four
    Answer: (B) Only two
    Explanation

    Option b is the correct 1 is incorrect and 2 is correct: Composition Aayog Prime Minister of India as the Vice-Chairperson: To be appointed by the Prime Governing Council comprising the Chief Ministers of all the States and UTs with legislature and Lt. Governors of all other Union Regional Council will comprise of the Chief Ministers of all the States and UTs with legislature and Lt. Governors of all other Union Ten-itories in the region. These will be chaired by the Chairperson of the NITI Aayog or his Chief Executive Officer: To be appointed by the Prime Minister for a fixed tenure, in the of Secrelary to the Government of fndia. slalement 4 is Incorrect. Statement 3 is correct. One of NIT! Aayogs objective develop mechanisms to formulate credible plans at level and aggregate these progressively at of government. Important Tips NITI Aayog composition also include: a) Experts, specialis

12. #12Practice set
    Consider the following statements regarding "Indicative Planning": 1. It recognises consumers' sovereignty and producers' freedom while achieving the targets. 2. Tn indicative planning, the State plays a marginal role in the economy. 3. Third Five Year Plan in India denotes India's transition towards indicative planning. okHow many of the above given statements are correct?
    • AOnly one
    • BOnly two
    • CAll three
    • DNone
    Answer: (B) Only two
    Explanation

    Option b is the correct l is correct: Indicative planning or planning is found in capitalist countries as well as in like India. The essence of indicative planning it not only consumers' sovereignty but freedom so that the targets and priorities of are 2 is the correct: After the revival of the role need of market in promoting growth and the Washington Consensus (1985), the World (1995) and the Santiago/New Consensus indicative planning has remained possible in which plays only a marginal role in the economy, especially areas of social 3 is incorrect: India's Eighth Plan planning would have to be reoriented so as to it indicative. Eighth Plan was unique in the sense that to manage the transition from a centrally to a market-oriented economy without the socio-cultural framework of the country. Important Tips In imperative planning the government has complete control over all economic oper

13. #13Practice set
    Which of the following statements is/are correct regarding the Planning Commission and NITI Aayog? 1. Unlike Planning Commission, the NITI Aayog decides on the quantum of grants to be made to the states. 2. NITI Aayog conducts research on public data and recommends policies to the states.Select the correct answer using the code given below
    • A1 only
    • B2 only
    • CBoth 1 and 2
    • DNeither 1 nor 2
    Answer: (B) 2 only
    Explanation

    Option b is the correct l is incorrect: NITI Aayog is just a think mandate is to research and provide indicative Planning Commission, it does not have the power on the funding for various development plans of 2 is correct: NITI Aayog conducts public data and gives out policies and guidelines states to adapt as they may want. It is like a body

14. #14Practice set
    Which of the following statements is correct about the Annual Plans during the Planning Commission era?
    • ATwenty-Point Programme was launched during an Annual Plan
    • BThese were based on the Gadgil strategy
    • CA total of 5 annual plans were released by Planning Commission
    • DThe strategy of annual plans was adopted due to similar reasons every time
    Answer: (C) A total of 5 annual plans were released by Planning Commission
    Explanation

    Option c is the correct a is incorrect. Twenty-Point Programme by 5th Five-Year Plan (and not by Annual b is incorrect. Gadgil strategy was the basis of 4 Year Plan which focused upon ideas of growth and progress towards c is correct. In total 5 Annual Plans were 3 were released during the Plan Holiday period of and other 2 were released in d is incorrect. The strategy of Annual Plans adopted due to same reasons both the time. First financial situation was weak and the moral of was low due to defeat from China. Whereas there was a fast changing political situation at

15. #15Practice set
    Consider the following statements with respect to the erstwhile Planning Commission of India: 1. The finance minister was the ex-officio member of the commission. 2. The deputy chairperson was appointed by the President. 3. The state governments were not represented in the commission. 4. The fulltime expert members had the rank of a minister of state.How many of the above given statements are correct?
    • AOnly one
    • BOnly two
    • COnly three
    • DAll four
    Answer: (C) Only three
    Explanation

    Option c is the correct l is correct. The finance minister and were the ex-officio members of the with them some Central Ministers were appointed members of the 2 is incorrect. The deputy chairman by the Central cabinet for a fixed tenure and rank of a Cabinet 3 is correct. The erstwhile Planning wholly a Centre-constituted body. The were not represented in the commission in 4 is correct. The commission had four to expert members. They had the rank of a state

16. #16Practice set
    With reference to the National Development Council (NDC), which of the following statements are correct? 1. Its recommendations were not binding on the Planning Commission. 2. The Draft Five-Year Plans used to be placed before the NDC, for its acceptance. 3. Government of India has passed a resolution to abolish the NDC and transfer its powers to the Governing Council of the NITI Aayog.Select the correct answer using the code given below
    • A1 and 2 only
    • B2 and 3 only
    • C1 and 3 only
    • D1, 2 and 3
    Answer: (A) 1 and 2 only
    Explanation

    Option a is the correct l is correct. The NDC is an advisory the Planning Commission (now NIT! Aayog) and were not binding. Statement 2 is correct. The Draft Five- Year Plan the Planning Commission (now NITI Aayog) was to the Union Cabinet. Then it was used to before the NDC, for its acceptance. Then, the presented to the 3 is incorrect. In 2016, it was reported that is also going to abolish the NDC and powers to the Governing Council of the NITI till now, no such a resolution has been passed

17. #17Practice set
    Consider the following statements regarding NITI Aayog: 1. The NITI Aayog does not have the power to allocate funds, unlike the Planning Commission. 2. The states have representation in the NITI Aayog, unlike the Planning Commission.Which of the statements given above is/are correct?
    • A1 only
    • B2 only
    • CBoth 1 and 2
    • DNeither 1 nor 2
    Answer: (C) Both 1 and 2
    Explanation

    Option c is the correct 1 is correct. The Planning Commission funds to union ministries and state NIT! Aayog mainly works as a 'Think Tank' knowledge as well as strategic expertise to all 2 is correct. The NIT! Aayog has a comprising the chief ministers of all states governors of union territories. composition of the Planning Commission had from states and union territories governments

18. #18Practice set
    Consider the following statements in the context of Finance Commission and the Planning Commission: I. The members of both the commissions are appointed by the president. 2. The recommendations of both the commissions are advisory in nature.Which of the statements given above is/are correct?
    • A1 only
    • B2 only
    • CBoth 1 and 2
    • DNeither 1 nor 2
    Answer: (B) 2 only
    Explanation

    Option bis the correct l is incorrect. The Finance Commission a chairman and four other members to be appointed president. With respect to the Planning Prime Minister was the chairman of the commission. members were appointed by the Central 2 is correct. The recommendations made Finance Commission and the Planning Commission of advisory in nature and hence not binding on

19. #19Practice set
    With reference to the Disinvestment policy announced as part of the Atmanirbhar Bharat initiative, consider the following: 1. Private sector will be not be allowed in the strategic sector. 2. In non-strategic sectors, Public Sector Enterprises will be privatised. 3. NITI Aayog will prepare the list of Central Public Sector companies that would be taken up for strategic disinvestment.How many of the statements given above are correct?
    • AOnly one
    • BOnly two
    • CAll three
    • DNone
    Answer: (B) Only two
    Explanation

    Option b is the correct 1 is incorrect: In strategic sectors, at least will remain in the public sector but private also be 2 is correct: In other sectors, PSEs will (timing to be based on feasibility, 3 is correct: NITI Aayog will work out on list of Central Public Sector companies that would up for strategic disinvestment. Important Tips Disinvestment is when governments or organizations sell or liquidate assets or subsidiaries. Various modes of disinvestment followed by the government- Disinvestment through minority stake sale in listed CPSEs. Buyback of shares by large PSUs Strategic disinvestment involves transfer of management control. Launch of exchange traded funds (ETF) Listing of CPSEs to facilitate people's ownership Merger and acquisition among PSUs in the same sector

20. #20Practice set
    Which of the following statements with reference to the poverty alleviation approaches undertaken by the government in India is correct?
    • AFirst Five-Year Plan marked the beginning of Trickle-Down Approach
    • BLiberalization, Privatization, and Globalization reforms of 1991 marked the beginning of Growth-Or iented Approach
    • CFifth Five Year Plan marked the beginning of Income and Employment Generation Approach
    • DThird Five Year Plan marked the beginning of the Provision for Basic Amenities Approach
    Answer: (A) First Five-Year Plan marked the beginning of Trickle-Down Approach
    Explanation

    Option a is the correct a is correct: The first five-year plan was which followed the trickle-down approach development. It meant for fast paced and transformation of agriculture in which would spread to the underdeveloped the more backward sections of the community effect. This was the major focus of planning and early Important Tips The beginning of Growth Oriented Approach was started in first plan and was the major focus of planning in the and early Therefore, it was not a new approach in policies and programmes post-1991 reforms. The inequalities caused by initial plans and disparities exacerbated by Green Revolution were tried to be addressed by Third Five Year Plan (1961-66) (not the fifth 5-year plan). Third plan focused on Incomes and employment generation through the creation of additional assets and by means of work generation programmes. Fifth Five Year Plan (FYP) witnessed t

21. #21Practice set
    Consider the following statements: 1. Both the countries, India and China, adopted the Five-year plans for development post 1950. 2. India's model of Special Economic Zone has close resemblence to the Special Economic Zone of China.Which of the statements given above is/are correct?
    • A1 only
    • B2 only
    • CBoth 1 and 2
    • DNeither 1 nor 2
    Answer: (C) Both 1 and 2
    Explanation

    Option c is the correct l is correct: Both the countries India have adopted the five years plans as a India announced its first five year plan in china launched its five year plan in 2 is correct: China launched their as a specifically delineated duty-free to be foreign territory for the purposes of and duties and tariffs. India has also special economic zones in 2000

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