Critical evaluation of 4th, 5th, and 6th five year development plan period in respect

to major policies brought, resource allocation, budget vs. achievement and

major problem of implementation.

INTRODUCTION

• In these plans Nepalese government has incorporated sector wise mission, mission, vision, purpose, policy, program, achievements and policy related matter.

• Government of Nepal has adopted various period based development plans for development of the country.

• Among these development plans critical evaluation of 4th, 5th, and 6th year development plan period in respect to major policies brought, resource allocation, budget vs. achievement and major problem of implementation are as below:

1.Fourth five year plan (1970-1975):

• This plan was aimed to improve the weakness of the past planned efforts.

• The objectives were creating of physical infrastructure, expand and diversity international trade, promote regional development etc.

• .

Major policies taken

• Concentrated limited production resources in a few selected fields.• Coordinate and integrate agricultural activities from concerned

departments of Ministry of Food and Agriculture.• Integrate service and facilities of ADB/N, ASC, LRC, and DOC etc.• Adoption of appropriate rent and tax in agricultural sector.• Explore export market other than India for selling grains in higher

price.• Develop appropriate marketing channel through reorganized

cooperatives as well as establishing marketing organization at national level

Budget and resource

• The fourth plan outlay was 3540 million rupees of which public sector expenditure was 2570 million rupees. 1172 million rupees was allocated for agriculture out of public sector budget. 1080 million was estimated from internal resource while foreign aid support was 14090 million rupees including grant and loan

Achievement from its implementation• The telecommunication, roads, airfields, and health services

in almost all sector the financial target exceeded and physical target were never achieved.

• During the plan, the annual rate of growth of GDP was only 2.5% per year as against the target of 4% per capita income and labor productivity remained virtually stagnant.

• The performance of agriculture was not encouraging. Food grain production was increased by 1.9% per year and cash crop production by 2% per year which was lower than target.

• Only 29.6% of the target was fulfilled in providing irrigation facility as against the target of 183,000 ha. Performance of industrial sector was also disappointing.

Major problem during implementation

• The concentration of efforts or resources on a few selected areas rather than covering wider areas was the major critique of that plan.

• Besides, instability of the government to provide sufficient quantity of inputs necessary for expansion and establishing an institutional infrastructure, no specific output targets etc were some of the problem encountered, others were poor administration and poor project preparation.

2.Fifth year plan (1974/75-1979/80):

• The fifth plan was formulated with minimum and maximum targets.

• Some of the objectives were to maximize output, make output consistent with the minimum felt- needs of people, maximum utilization of man-power, balance regional development and integration.

Major policies taken:

• A policy emphasizing on mobilization of domestic resources.

• Modification in the investment and production patterns.• Industrial management, development and diversification

of the trade were emphasized.• Division of country into four development region, four

growth centers, four north-south corridors.• Policy for ecological development with livestock

development in northern regions, horticultural development in the central hills and food grains and cash crops in the southern plains were emphasized

Budget and resource allocation:

• The total outlay of fifth plan was estimated to Rs. 919.7 million to minimum programs and Rs. 1140.4 millions to maximum programs including public, panchayat and private sector.

• As compared to outlay in the 4th plan, nearly double allocation was estimated in the fifth plan.

• The agricultural, irrigation, land form and forest like sector allocated 34.4% under minimum and 34.8% under maximum target.

• The plan first envisaged to share 55% of the outlay from internal resources and 45% share from external resources.

Achievement from its implementation

• During the end of 5th plan period, GDP registered an increase of 2.2%, not to 4 to 5 percentage as targeted .

• It was targeted to increase the irrigated area up to 146 thousand hectare but only 94.42 thousand hectare land could be irrigated.

• The improve seed use was 63.82% of the target. Similarly fertilizer use target exceeded to 50% while the investment in agricultural tools exceeded the target which was 171.42% and the agricultural loan disbursement failed to achieve the target.

Major problem during implementation:

• Lack of coordination among agricultural credit, agricultural input, agricultural extension, cooperative and land return programs.

• Disharmony between agricultural research and extension. Shortage of manpower, unavailability of construction materials and other input causes low achievements.

• Agricultural sector failed because of heavy dependence on the vagaries of weather, limitation of irrigated land, unavailability of inputs etc and industrial sector could not meet the target because of power shortage.

3.Sixth year plan(1980-1985)

• The sixth five year plan is based on actual figures of the first four years and estimates for the fifth year of the plan period. This plan focused on meeting minimum needs of people.

Major policies taken

• Priority to agricultural development and development of cottage and small scale industries.

• Stress on export trade and tourism development.• Development of water resources, full utilization of

infrastructure already created, to increase absorptive capacity of economy.

• Decentralized decision making process in planning and emphasize on population growth control.

Budget and resource allocation:

• Total outlay was Rs. 33940 million at the constant price of 1979/80.

• It was allocated sector wise as public sector 60.37%, panchayat sector 5.3% and private sector 34.33%. as a priority sector, 31.1% was allocated for agriculture, irrigation and forest, 26% for industry, mining and power, 17.3% for transport and communications, 25.6% for social services.

• Rs. 21750 million was allocated as development expenditure. Out of that about 60% i.e. 13050 million was expected to come from foreign loan and grant.

Achievement from its implementation:

• The achievements from this plan were somewhat encouraging. • The GDP growth rate was slightly higher than the target (4.4% per

annum against the target of 4.3% per annum). • Agriculture sector GDP growth rate was 2.9% less than target of 4%.• Annual per capita income increment was 1.7% against target 2%

target.• The irrigation facilities provided under the sector recorded an

increase by 26%, bringing the total irrigated area to 251,000 hectares.

• Industrial sector production was also 10.3% per year against 10% target

Major problems during implementation

• Slow pace of development of irrigation • under-utilization of the existing irrigation capacity, • poor consumption and distribution of fertilizer• poor research on increasing productivity• poor extension services reachable to the farmers on time.• Poor marketing system• poor technical manpower• poor mobilization of foreign aid in productive sector were

major problems of the overall agricultural development, that were made basis for planning seventh five year agricultural development.

Presented By:-Asmita Aryal

Bijaya GahatrajBijendra Pradhan

Bipin KarkiBibek Gyawali

Dorna GiriGovind Bhatta

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