The full Planning Commission meeting chaired by Prime Minister Manmohan Singh agreed on Thursday to work towards a growth target of 9.0-9.5 per cent for the 12th Plan (2012-17). It endorsed the objectives and challenges outlined by the Commission for the five-year period involving special focus on policy and governance reforms and redesigning of government programmes.
The Planning Commission gave a presentation on the ongoing 11th Plan and objectives of the 12th Plan which include 100 per cent literacy, inclusive growth and development of physical and social infrastructure within the overall target of fiscal consolidation.
In his concluding remarks at the meeting, Dr. Singh pointed to the “general agreement” arrived at for focus on policy and governance reforms while working towards the targeted growth rate. “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,” Dr. Singh said. He pointed to the Commission's emphasis on the importance of working within the overall fiscal consolidation target. “This is an important constraint that we must recognise. The Planning Commission and Finance Ministry together must come up with a realistic assessment of Plan size for the Centre and the States,” he said.
In particular, the Prime Minister noted “the suggestions of the Finance Minister to improve the functioning of the legal system and methods of dispute resolution, and on improving the functioning of key infrastructure sectors.” Dr. Singh asked the Commission to prepare a draft approach to the 12th Plan for discussions with the States, taking into account the day's deliberations and keeping in mind sustainability and low carbon issues.
After the circulation of a revised approach document to the Ministries concerned, it can then be brought to the Cabinet and then to the National Development Council (NDC). “We should aim at an NDC meeting sometime in July,” Dr. Singh said.
Earlier, setting the tone for discussions at the meeting, Dr. Singh said: “The 12th Plan objective must be faster, more inclusive and also sustainable growth... We need to identify the critical areas where existing policies and programmes are not delivering results and should, therefore, be strengthened or even restructured.” India, he said, needed to tackle new challenges and this called for new initiatives.
According to the Commission's presentation, for aiming at 100 per cent adult literacy, the 12th Plan (2012-17) would have to increase expenditure on health from 1.3 per cent to at least 2.0-2.5 per cent of GDP (gross domestic product).
The country was estimated to have recorded an annual growth rate of 8.2 per cent during 11th Plan as against the target of nine per cent. In particular, the economic performance was impacted by the global financial crisis and drought.
In the years ahead, some of the challenges that the economy faced were accelerated inflation, global pressure on food and oil prices, quality of governance and weak manufacturing performance, which could be given a boost by liberalising the policy on the foreign direct investment (FDI), it said. “Citizen feedback reveals general unhappiness with governance and public service delivery. They believe that corruption is built into systems for public service delivery,” the Plan panel said.
