Theory of Pricing in Socialist Countries

ment in agriculture is much higher than the terminal year investment in agriculture sec- ton In absence of pipeline investment and under the assumption of uniform use of investment expenditure during gestation period (as done in Sixth TN) these figures appear to be inconsistent to each other. Inconsistency is also reflected when structure of total plan investment is compared to that of the base year (1979-80) and terminal year (1984-85). Because of ad hoc method of using adjustment factors for different sectors in the plan periods the total plan investment is also inconsistent with growth targets in Sixth Plan. As to the pipeline investment Sixth TN shows (see Table 1) that no investment is required for capacity increase in mining and electricity sectors during Sixth Plan period, the whole of plan investment being meant for Seventh and Eighth Plans. This is incomprehensible as there are a number of projects pertaining to these sectors which were started during Fifth Plan period and committed to be finished during Sixth Plan period. By our method, we find that about 73 per cent and 41 percent of the total plan investment would be required for capacity creation in mining and electricity sectors respectively during Sixth Plan period.