Indian History

Rolling Plan (1978-80)

In 1978 Murarji Desai government rejected fifth five year plan and introduced Rolling Plan. The basic feature of the Rolling Plans was that nnual fluctuations in prices and major economic developments could be considered while fixing targets. The Rolling Plan consists of three kind of plans that were proposed.

The First Plan is for the present year which comprises the annual budget. Second plan is for a fixed number of years, which may be 3, 4 or 5 years. Plan number two is kept changing as per the requirements of the Indian economy. The Third Plan is a perspective plan which is for long terms i.e. for 10, 15 or 20 years.

The main advantage of the rolling plans is that they are flexible and are able to overcome the rigidity of fixed five year plans by mending targets, the object of the exercise, projections and allocations as per the changing conditions in the country’s economy.

The main disadvantage of this plan is that if the targets are revised each year, it becomes very difficult to achieve them which are laid down in the five-year period and it turned out to be a complex plan. Frequent revisions resulted in lack of stability in the economy which is essential for its balanced development and progress.

There is no fixation of dates for the commencement and termination of the plan in the rolling plans. This plan was again rejected by the Indian National Congress government in 1980 and a new Sixth Plan was made.