Disadvantages:

i. Malallocation of Resources: Resources allocation is based on trial and error and selfish interest of the ruling class leading to underproduction of goods required by the poor majority.

ii. Loss of Consumers' Sovereignty: Consumers are restricted to only the goods and services dictated for production by the state.

iii. No Freedom of Enterprise: Every person is employed by the government and there is tendency for underemployment misallocation of human resources.

iv. Waste of Resources: Central Planning requires large bureaucratic structures which waste resources.

v. Poor Quality Product: The absence of competition weakens the drive for producers to improve on products' quality.