Cabinet cuts 9th Plan outlay

The other growth parameters in the modified draft have also been subsequently revised downwards as compared to the document prepared by Dandavate. Agricultural and allied sectors growth has been envisaged at 3.9 per cent as against 4.9 per cent, mining and quarrying 7.2 percent (7.7 per cent), manufacturing 8.2 per cent (9.7 per cent), electricity, gas and water 9.3 per cent (10.6 per cent), construction 4.9 per cent (5.7 per cent), trade 6.7 per cent (7.1 per cent), rail transport 3.9 per cent (3.4 per cent), other transport 7.4 per cent (7.9 per cent), communications 9.5 per cent (11.2 per cent), financial services 9.2 per cent (10.1 per cent), public administration 6.6 per cent (4.9 per cent), other services 6.6 per cent (5.5 per cent) and overall growth rate 6.5 per cent (7 per cent). The ICOR has been revised upwards to 4.3 from 4.0 envisaged earlier.

Briefing newsmen about the cabinet meeting, member-secretary of the Planning Commission S R Hashim said that the total Ninth Plan component of Rs 8,59,000 crore would include Rs 3,74,000 crore of gross budgetary sources, Rs 2,90,000 crore public sector resources and Rs 1,95,000 crore resources of states and Union Territories. The public sector outlay towards central plan would be of the order of Rs 4,89,000 crore, while thestate plan outlay would amount to Rs 3,70,000 crore.

The reduction in the Plan component would be at the cost of central sector outlay, which was reduced from Rs 5,08,021 crore to Rs 4,89,000 crore. However, the state sector plan outlay has been marginally improved to Rs 37,000 crore from Rs 3,66,979 crore envisaged by Dandavate.

The plan outlay, according to Hashim, also included a provision of Rs 21,946 crore towards the Special Action Plan (SAP) of the Prime Minister. The SAP was prepared by the BJP-led coalition government to give emphasis on food and agriculture; physical infrastructure; health, education, housing and drinking water; information technology; and water resources.

Hashim also pointed out that the SAP has been fully integrated with the Ninth Plan draft which would be placed before the NDC some time in last week of February. Referring to envisaged GDP growth of 6.5% during the Ninth Plan, Hashim said that during the current year the GDP growth was expected at around 6 per cent. It was 5per cent during 1997-98. To make up for the subdued growth in the first two years of the9th Plan, the GDP in the remain three years would have to be 7%.

According to Commission it was possible to achieve 7 per cent GDP growth rate with robust exports. Efforts should be made to achieve export growth rate of 13-14 per cent in physical terms during the remaining three years of the Plan period.