What is Plan Holiday?

What is Plan Holiday?

Plan holiday is mainly described as the gap between the two five-year plans. The period from 1966 to 1969, i.e. after the Third Five Year Plan and before the fourth five-year plan is called Plan Holiday. This three-year period is considered a “Planning Holiday” due to the occurrence of the three annual plans, instead of five-year plans. This is because of the uncertainties in the government policies and financial conditions in the nation to implement the development process....

Reasons Behind the Plan Holiday:

After the end of the Third Five Year Plan, the financial resources of the nation were drained and no further funds to implement new Plans for the period of Five Years. Due to this, the Government was forced to declare Plan Holidays during the periods “1966-1967, 1967-1968, 1968-1969.” Though the Fourth five-year plan was ready for implementation in 1966 itself, the weak financial situation as well as the low morale after the defeat by China, the Government decided to go for an Annual Plan. Also, the War with Pakistan in 1965 caused disruption for Foreign Aid. In June 1966, the Central Government devalued the “Rupee”, so that the exports of the nation would improve. Some economists as well as the opposition leaders called for a discontinuity in the planning process.  These plans were also known as “Pygmy Plans” as pygmy means small/ dwarf. The total plan value for these annual plans was 6626 crores....

Year Wise Account/ Allocations For Annual Plans:

The Years-1966-1967: Total allocation of 2165 crores....

Role of Plan Holiday In Economic Development:

Amidst the financial suppression after the Third five-year plan, the plan holiday played a crucial role in the development of the Indian economic condition.  Although these were pygmy plans, they achieved a notable growth rate in the economy such that the Nation regained its economical stability. Estimations show that the Growth rate has reached around 6.9% during this plan holiday period whereas it failed to reach 5.9% estimated target in the Third five-year plan. Food grain productivity rate/ Agriculture productivity rate has reached 95 million tons by the end of these pygmy plans/ plan holiday. Thus plan holiday played a prominent role and helped the nation to generate sufficient revenue profits to formulate the Fourth five-year plan....

Related Frequently Asked Questions and Answers:

1Q. Which areas were given more priority during Plan Holiday?...