WBCS.LIVE practice question

The Gadgil Formula, extensively used for allocating central plan assistance to states, was officially adopted during which Plan?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Third Five-Year Plan
  2. Fourth Five-Year Plan
  3. Fifth Five-Year Plan
  4. Sixth Five-Year Plan

Correct answer and explanation

Correct answer: Fourth Five-Year Plan

Explanation: āœ… Correct Answer: B) Fourth Five-Year Plan šŸ“š Explanation: The Gadgil Formula was methodically formulated by Dr. D.R. Gadgil, then Deputy Chairman of the Planning Commission, in the year 1969. It was officially adopted and strictly implemented during the Fourth Five-Year Plan to ensure the equitable distribution of central assistance to various state plans. The mathematical formula brought transparency and objectivity to fund allocation by heavily weighting structural factors like state population and per capita income.