A) No physical targets were visualized
B) Revision of the achievements of previous year
C) Annual fluctuations in prices and major economic developments could be considered while fixing targets
D) No financial target except in term of annual plans was envisaged
Correct Answer: C
Solution :
In the rolling plans there are three kind of plans. Number one is the plan for the current year which comprises the annual budget. Number two is a plan for a fixed number of years, which may be 3, 4 or 5 years. This number two plan is kept changing as per the requirements of the economy. Number three is a perspective plan which is for 10, 15 or .20 years. Thus there is no fixation of dates in respect of commencement and end of the plan in the rolling plans. So the main advantage of the rolling plans is that they are flexible. They are able to overcome the rigidity of fixed five year plans by revising targets, projections and allocations as per the changing conditions in the country's economy. However if targets are revised each year, it becomes very difficult to achieve the targets which are laid down in the five year period. Frequent revisions make them, difficult to maintain right balances in the economy which are essential for its balanced development. The rolling plans allow for revisions and adjustments. In rolling plans the review of a plan becomes a continuous exercise. The effect of changed circumstances and the changed demand and supply conditions can be incorporated in the plan. No doubt in fixed plans, the annual reviews are made, but they are getting information regarding the progress of the economy. While in case of rolling plans, the yearly reviews are such a nature that they serve the basis for the revised new five year plan every year. Such yearly review is the essence of rolling plans. In India the 6th five year plan (1978-83) by the Janta Government was called Rolling Plan which was discarded by the next Congress Government in 1980. So far rolling plans have been unsuccessful in underdeveloped economies like Mexico and Myanmar and were later discarded, however in developed nations like Japan & Poland they have been successfully used.
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