nepalese 4th ,5th and 6th year plan

1. 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.

2. 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:

3. 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.

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. 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

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

16. 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

17. 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.

18. Presented By:-
Asmita Aryal
Bijaya Gahatraj
Bijendra Pradhan
Bipin Karki
Bibek Gyawali
Dorna Giri

19. Thank You