The Islanders started deriving the benefits of Five Year Plans only when these Islands were declared a Union Territory in 1956. Attempts were made in the middle of the Second Five Year Plan to carry out an integrated short term plan in the islands with an outlay of Rs. 73.85 lakhs. This was the first Plan of the territory. An outlay of Rs. 98.38 lakhs was approved for accelerated development of various important sectors like transport and communication, Education and health during the third Plan. The actual expenditure was Rs. 108.51 lakhs. Much progress could not be made till the middle of the Fourth Plan owing to inadequate transport and communication facilities. The major portion of the approved outlay of Rs. 200 lakhs for the Fourth Plan was spent on Fisheries and Education besides improving transport and communication. The improvement of Transport and communication and the spread of education gave a new thrust to development during the Fifth Plan. The outlay was three times that of the fourth plan. Electrification of the Islands, opening more educational institutions, improvement of fishing etc. started during the Fifth Plan with a total outlay of Rs. 622.73 lakhs. When the fifth Plan ended in 1977-'78,the expenditure was Rs. 380.95 lakhs. The approved outlay during 1978-80 was Rs. 543.64 lakhs,against which the expenditure was Rs. 307.50 lakhs.
A stronger thrust was envisaged on improvement of transport, followed by education, electrification, agriculture, fisheries etc. during the Sixth and Seventh Five Year Plans. An outlay of Rs. 20.35 crores was approved during sixth plan. The expenditure during the Sixth Five Year plan was Rs. 28.14 crores. The Seventh Five Year Plan outlay was Rs. 43.90 crores,where as, the expenditure was Rs. 67.54 crores.
The VIII Five Year Plan outlay was Rs. 120 Crores and provisional expenditure is Rs. 148.72 crores.