The Central Government has set in motion the process for formulation of the XII Plan (2012-17) starting April 1, 2012, with a tentative intent to achieve a GDP (gross domestic product) growth of about 9-9.5 per cent during the five-year period.
As has been the practice for the past many decades, the exercise involves the firming up of an approach paper prepared by the Planning Commission which lays down the major targets in the economic and social sectors, the key challenges and resources that are required in meeting them and the broad strategy that must be adopted to achieve these objectives.
Once a consensus is reached on the desired objectives and targets in consultation with the ministries and departments concerned, the approach paper is to be cleared by the Union Cabinet and placed before the National Development Council (NDC), comprising the Centre and chief ministers of all States, for final approval to facilitate implementation.
But in a radical departure from yesteryears when the targets and objectives of the Plan period were decided by the Centre and the States, the Commission this time round has sought to develop an inclusive and participative approach to the entire planning process.
Towards this end, it has evolved a web based consultative process in which all interested citizens and stakeholders can participate by giving their views and suggestions on a multi-dimensional strategy matrix that has been developed indicating some of the key areas that need to be explored.
Thus, for the first time in the history of India's policy planning, the inclusive approach has led to commencement of a wide consultative process on the challenges for the XII Plan.
According to the Commission, apart from 900 civil society organisations (CSO), industry associations and think-tanks across the country that have participated in the inclusive planning process, over 32,000 netizens have left “many insightful comments” following the launch of a dedicated website ( http://12thplan.gov.in ) which is also linked to Facebook.
Startling feedback
The feedback received through this people's participation process has been startling, though not unexpected. In its presentation paper titled ‘Issues for approach to the XII Plan' prepared for the full meeting of the Planning Commission presided over by Prime Minister Manmohan Singh on April 21, the Commission said that there was a strong demand from all sectors of society to improve implementation accountability and service delivery.
Among the other key messages from such consultation, while citizen groups broadly support the stated objectives of other government programmes, the design and institutional arrangements are weak and greater devolution and empowerment is needed. Besides, government programmes need a new architecture which means greater localisation, break-down of silos, feedback from citizens and mechanism for learning and sharing of best practices.
Moreover, since a major contribution to economic growth now comes from the private sector, the need is for a policy environment that supports this dynamism.
In effect, people want the government to create an environment for nurturing enterprise, improving markets, supporting innovation, providing access to finance and inculcating respect for common pool resources.
Referring to the people's concerns in his concluding remarks at the full meeting on April 21, Dr. Singh said: “There was general agreement that the Planning Commission should focus on policy and governance reforms, while working towards a growth target of between 9 and 9.5 per cent for the XII Plan.
“We should also set monitorable targets related to different dimensions of inclusiveness, and then work to achieve these targets by appropriate design of policy and funding of Plan schemes.”
Although euphemistically referred to by Dr. Singh as ‘policy and governance reforms', simply put in blunt terms, the people's concerns (read disgust) pertain to the leakage, pilferage, graft and corruption that have seeped into the government's various social and other welfare programmes with regard to implementation, accountability and service delivery, be it the supply and distribution of PDS (public distribution system) grains and fuel such as subsidised kerosene and even the much touted Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
Host of scams
In an environment of ongoing investigations into a host of scams — CWG, 2G and Adarsh Housing — the malady of corruption has become so all-pervasive that people are seeking deliverance from this deep-rooted scourge. Perhaps, it is this exasperation that explains the overwhelming people's movement that was witnessed when social activist Anna Hazare went on a fast-unto-death in April to press his demands on the Lokpal Bill. More recently, a survey by the Centre for Media Studies revealed the role of corruption and graft in the everyday life of the common man, especially in the rural areas even in the procurement and availability of basic amenities such as PDS grains and kerosene, ration card, water for farm use and for enrolment as a BPL (below poverty line) household.
Clearly, more than allocating larger resources for grandiose programmes, half the battle can be won if the government can effectively plug the loopholes in the delivery mechanism of commodities as well as services through close monitoring and by meting out exemplary punishment to the guilty, however high and mighty they may be.
Growth parameters
Coming back to the economic growth parameters being laid down for the XII Plan, a GDP expansion of 9-9.5 per cent may appear low, considering that the XI Plan (2007-12) was projected to end with a growth of 9 per cent, if not double digit. Perhaps, it would have, but for the effect of the drought and the impact of the global financial crisis that put even the most advanced and developed economies into a tailspin and are yet to emerge from the setback.
In the event, it is remarkable that the XI Plan is officially being projected to end with a growth rate of 8.2 per cent. According to the Planning Commission, the basic objective of the XII Plan is to facilitate and achieve faster, more inclusive and sustainable growth and realistically, in this context even a growth rate of 9 per cent will need strong policy action wherein energy, water and environment present major sectoral challenges.
To achieve greater inclusive growth, the Commission has stressed the need for better farm sector performance with a growth of at least 4 per cent, faster creation of jobs, especially in manufacturing, which needs to grow by about 11-12 per cent annually, stronger efforts at health, education and skill development, greater effectiveness of programmes directly aimed at the poor along with special programmes for socially vulnerable groups.
Towards this end, it has called for reduction in the number of Centrally-sponsored schemes to a few major programmes so as to achieve better coordination and monitoring. Essentially, the Plan target is sought to be achieved by striving to attain 100 per cent literacy, inclusive growth schemes and development of the country's physical and social infrastructure within the overall target of fiscal consolidation.
In effect, it would mean increased allocations for health, education and skill development to the extent of at least 1.2 per cent of the GDP, especially as these sectors had received less than what was projected for them during the XI Plan.
Similarly, infrastructure, including irrigation, watershed management and urban infrastructure will require an additional 0.7 percentage point of the GDP over the five-year period. The Commission has pointed out that since the Centre's gross budgetary support (GBS) is to rise by a mere 1.3 percentage points over the five years, all other sectors will have a slower growth in allocations.
The Prime Minister has asked the Planning Commission to revise the draft approach document after consultation with the states and circulate it to the Central ministries concerned so as to pave the way for Cabinet clearance and final approval of the NDC some time in July.
