Montek hopes that Mid Term Review is ready by next budget

With the global economic downturn forcing policy makers across the world to re-think their strategies,the Planning Commission has decided to expedite the Mid Term...

With the global economic downturn forcing policy makers across the world to re-think their strategies,the Planning Commission has decided to expedite the Mid Term Review of the Eleventh Plan,arguing that its parameters need major overhauling of both growth targets and sectoral priorities. The panel decided to speed up the review to place the findings of the review for the approval of the full Planning Commission meeting in January 2010.

Emerging from the panels internal meeting of,deputy chairman Montek Singh Ahluwalia said the plan panel would finalise the appraisal by January next year so that priorities in the backdrop of recent global developments can be clearly defined and get reflected in the next budget. His assertions amply indicate that the commission is looking for downward revision of growth as well as sectoral targets. It is as clear that as the Eleventh Plan target of 9 per cent growth with 10 per cent targeted for the terminal year has become unrealistic following the global meltdown,which has virtually shaken even the leading economies of the world.

We hope that the Mid Term Review would be ready before the next Budget is presented. We intend that whatever comes out of the Mid-Term Review,whatever mid-course corrections may be needed,whatever consequences of re-prioritisation that has already taken place,get properly reflected in the next Budget, Ahluwalia said. It would not be possible to achieve the overall growth target of 9 per cent during 2007-12. The growth target has to be moderated, a commission member suggested.

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The economy grew around 7.2 per cent during the first two years of the plan,but even after assuming most optimistic projections for the current year,it becomes evident that the envisaged plan targets would remain elusive. The commission feels that even sectoral targets set in the plan document have not been followed strictly because of the impact of slowdown on the economy,despite huge allocations made for some sectors to insulate vulnerable sections of the society.

To have a more credible appraisal,the plan panel would involve external agencies and other stakeholders to ensure that the review has more meaningful findings and recommendations that result in implement able changes in the approach paper. To give more credibility to the plan process,the meeting also decided to concurrently start the process of 12th plan formulation,which begins from April 2012.