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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

TABLE I
Investment allocation, capital per worker and
net outbut-investment ratio

slan

ercentage allocation ; ; .
p of sdlage au for capital net output-investment ratio
— -- per
invest- consumer worker
ment goods (Rs.)
goods

invest- consumer total
ment goods (AiBi+AcPe)
goods

m
8

Second Plan:
Draf plan-frame
(1955) - . .
Second plan: actual
(1956-61) . . -
Third plan: estimate
(1061-66) . . 39 61 6.000

0.21

2C

0.67 0.51

0.53

0.38

0.63

0.47

Many changes were made in the targets and allocations
of the Draft Plan-frame at the stage of the preparation of the
Second Plan; the values of the parameters of the Second Plan
as actually realized and the values given in the Draft Planframe
 are therefore not strictly comparable. The interesting
point to note is that the estimated parameters for the Third
Plan are fairly close to the parameters used in the Draft Planframe.

The rate of investment («,) in the first year of the Second
Five Year Plan was 9.8 per cent, the initial national income (Y,)
was Rs. 108.0 billion and the values of the other parameters
were A; =36%, A, =64%, B;=0.11, B.=0.53, as given in the
second row of the above table. Using these values in the above
expression, the estimated national income comes out as
Rs. 129.7 billion for 1960-61 against an actual figure of
Rs. 130.1 billion both expressed at 1952-53 prices. In the case
of the Third Five Year Plan, using the parameters given in
the third row of the table, an initial income of Rs. 145.0 billion
(at 1960-61 prices) and an initial rate of investment of II per

"15] Mahalanobis II - pag. 8