PM looking for perfect 10

The Planning Commission today approved the approach for the Eleventh five year plan starting 2007 where the target would be to achieve...

The Planning Commission today approved the approach for the Eleventh five year plan starting 2007 where the target would be to achieve an average 9 per cent GDP growth over the next five years with the terminal years clocking 10 per cent GDP growth.

The full Commission which met under the chairmanship of Prime Minister Manmohan Singh today approved a set of socio-economic monitorable targets to be achieved over the next five years in areas ranging from income and poverty, education and health to infrastructure and environment in order to make the growth process 8220;more inclusive8221;.

Addressing the meet, the PM clearly specified that this was the 8220;first time since the planning process began that we will be aiming for a growth rate of 10 per cent in the final years of the Plan8221; and in doing so, India 8220;would be finally emerging into the front ranks of fast growing developing countries.8221;

In the same breath, the PM also laid to rest the contentious issue of whether the funding of the XIth plan would need some relaxation of the FRBM targets by stating while there is a need for a larger Plan, 8220;not just in absolute terms but also as a proportion of GDP. This cannot come at the cost of fiscal prudence and stability.8221;

Given the social sector objectives along with the UPA government8217;s flagship programmes, the approach paper estimates that the gross budgetary support for the Plan would have to increase by 2.5 percentage points of GDP above the Tenth Plan period.

While higher tax buoyancy coupled with rationalisation of non plan expenditure by limiting it to only 5 per cent is expected to yield the required funds, the PM specifically asked the Commission to weed out non-performing schemes and re-prioritise spending.

He told the Commission that 8220;a thorough review of ongoing programmes to eliminate those which have outlived their original rationale8221; is needed. Besides, he specifically outlined areas that need resources and attention and said, 8220;agriculture, irrigation and water resources, health, education, critical investment in rural infrastructure, and the essential public investment needs of general infrastructure, along with progammes for the upliftment of SC/STs 8212; these must have the first claim on resources.8221;

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Speaking to reporters after the meet that lasted for three hours, deputy chairman of the Planning Commission, Montek Singh Ahluwalia, said that reprioritising schemes would be one of the 8220;tough decisions to be taken8221; because it would be impossible to meet all demands placed by individual ministries.