Planning in Nepal: 14 Periodic Plans5 min read

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Planning in Nepal

The history of a plan in Nepal started with Juddha Shumsher Jung Bahadur Rana; Juddha Shumsher JBR managed or prepared plan for 20 years, but never heard by people and never came in reality. Similarly, Mohan Shumsher also made 15 years plan, but it was an unsuccessful attempt, and a futile effort; the national planning committee never came into reality. Moreover, after the dawn of democracy in 1950, Prime Minister Matrika Prasad Koirala under the reign of King Tribhuvan drafted 10 years plans. All these exercised were in vain. These efforts are never entitled as planning in Nepal. Therefore, the first plan at the time of late King Mahendra in 1956 is deemed as the first official plan of Nepal.

Planning in Nepal: Periodic Plans

Table 1

Planning in Nepal

Plan Major Highlights
First Five-Year Plan The first five-year plan was exercised from 1956 to 1961 AD. Rs. 576 million was allocated for Development expenditures. Out of total development expenditures, transportation and communications received 36 percent, and 20 percent was allocated to agriculture along with village development and irrigation. The actual expenditure was about Rs. 383 million, which was about 2/3 of total expenditure. Targets were missed by a wide margin. For example, although approximately 1,450 kilometers of highways were targeted for construction, only about 565 kilometers were built.
Plan Break There was a ‘plan holiday’ for 1 year from 1961-62 because of establishment party-less democratic Panchayat system
Second Three-Year Plan The second three-year plan was implemented from 1962-63 to 1964-65. Though the outline of a second five-year plan was already prepared, the second three-year plan was brought into existence. Rs. 615 million was allocated for Development expenditures. Out of total development expenditures, transportation and communications received 39 percent, and Industry, tourism, and social services were the second priority. Although targets again were missed, there were improvements in industrial production, road construction, telephone installations, irrigation, and education.
Third Five-Year Plan The third five-year plan was implemented from 1965/66 to 1970/71. Total planned expenditures were more than Rs1.6 billion. It also focused on transport, communications, and industrial and agricultural development.
Fourth Five-Year Plan The fourth five-year plan was exercised from 1971/72 to 1975/76. Estimated total expenditures amounted to more than Rs 3.3 billion. Transportation and communications again were the top priority, receiving 41.2 percent of expenditures, followed by agriculture, which was allocated 26 percent of the budget.
Fifth five-year plan The fifth five-year plan was exercised from 1976/77 to 1980/81. Estimated total expenditures amounted to more than Rs 8.8 billion. Top priority was given to agricultural development, and emphasis was placed on increasing food production and cash crops such as sugar cane and tobacco. Increased industrial production and social services also were targeted. Controlling population growth was considered a priority. The problem of poverty was also addressed although no specific goals were mentioned.
Sixth Five-Year Plan The sixth five-year plan was executed from 1981/82 to 1985/86. Estimated total expenditures amounted to more than Rs 22 billion. Agriculture remained the top priority; increased social services were second. The budget allocated in Transportation and Communication was less in comparison to previous periodic plans.
Seventh Five-Year Plan The sixth five-year plan was executed from 1986/87 to 1990/91. Estimated total expenditures amounted to more than Rs 29 billion. Encouragement of private sector, focus on basic needs and for the first time, specific goals were set for meeting basic needs. The availability of food, clothing, fuelwood, drinking water, primary health care, sanitation, primary and skill-based education, and minimum rural transport facilities was emphasized.
Plan break Due to major political breakthrough[4], the periodic plan got suspended for two years from 1990 to 1992.
Eighth Five-Year Plan The eighth plan was exercised from 1992/93 to 1997/98. It was the first plan of democratic government. The perspectives of this plan are based on two principal contradictory factors. These factors consist of, on the one hand, the positive aspects of the new aspirations and enthusiasm among the general public and, on the other, the negative aspects of the legacy of economic depravity left behind by the Panchayat regime.
Ninth Five-Year Plan The ninth plan was exercised from 1998/99 to 2002/03. Poverty alleviation was the major target. The other target set by ninth periodic plan increased in industrial production by 6 percent, industrial contribution to GDP expected to reach 14 percent, 350000 new job creation. However, most of the target was missed.
Tenth Five Year Plan The tenth plan was implemented from 2003/04 to 2007/08. The tenth plan strictly focused on poverty alleviation. The poverty reduction strategy paper was presented. the plan has targeted to improve the economic, human and social indicators
Eleventh Three-Year Interim Plan The eleventh plan was implemented from 2007/08 to 2009/10. The eleventh plan is the first periodic plan of the Federal democratic republic of Nepal. It focuses on poverty reduction, relief, rehabilitation, and reintegration, achieving sustainable economic growth rate, increasing employment and lay a foundation for a Prosperous, Modern and Just Nepal. The expected growth for the plan period was 6.2 percent with 4.1 growth in agriculture and 7.5 percent in the non-agriculture sector.

The second major political breakthrough[5] occurred in the 2062/63 BS, the interim plan was drafted. Hence, the Eleventh Periodic Plan is called Three-Year Interim Plan which was exercised from 2008/09 to 2010/11. Similarly, Twelfth, and Thirteen Three-Year Plans were executed from 2011/12 to 2013/14 and 2014/15 to 2017/18 respectively. Currently, the Fourteenth Three-Year Plan is running and it is exercised till 2020/21.

Endnotes

[1] In 1951/52, India drafted an official plan under the chairmanship of Pandit Nehru; however, Bombay Plan (1934), People’s plan (1945), and Gandian Plan (1944) have existed before the first official plan of the 1950s.

[2] The country plan was drafted in the 1950s, but the official plan was brought into existence in 1985.

[3] The history of the plan in Nepal started with Juddha Shumsher Jung Bahadur Rana; Juddha Shumsher JBR managed or prepared plan for 20 years, but never heard by people and never came in reality. Similarly, Mohan Shumsher also made 15 years plan, but it was an unsuccessful attempt, and a futile effort; the national planning committee never came into reality. Moreover, after the dawn of democracy in 1950, Prime Minister Matrika Prasad Koirala under the reign of King Tribhuvan drafted 10 years plans. All these exercised were in vain. These efforts are never entitled as planning in Nepal. Therefore, the first plan at the time of late King Mahendra in 1956 is deemed as the first official plan of Nepal.

[4] Restoration of democracy; introduction of the multi-party democratic system and the People’s Movement I (2046); Party-less democratic Panchayat system existed from Second three-year plan to seventh five-year plan.

[5] Abolition of Monarchy; Dawn of Federal Democratic Republic of Nepal; People’s Movement II; Maoist Insurgency, the formal end of civil war, and instigation of a peace process.

More study materials:

14th Periodic Plan of Nepal

Periodic Plans of Nepal

Planning in SAARC

 

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