11th plan aims at 9% GDP growth

The draft 11th Plan document today set a target of achieving an average 9 per cent gross domestic product (GDP) growth in the five year period beginning April 2007, up from the average 7.6 per cent achieved during 2002-07 period.

The full Plan panel, which met here today, cleared the draft of the ambitious document, whose central vision is to deliver faster and more inclusive growth across sectors.

To this end, the total 11th Plan size has been set at Rs 36,44,718 crore, of which the central gross budgetary support (GBS) would be Rs 14,21,711 crore, nearly double the previous plan.

As a share of GDP, total Plan resources at Centre and state level are increasing to 13.5 per cent, higher than the 9.4 per cent in the previous plan period. At comparable prices, the 11th Plan outlay will be 120 per cent higher than the 10th Plan realisation.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the final draft will be sent to the Cabinet in a week or two. "Later, the Plan will put before the National Development Council (NDC), which includes all state Chief Ministers. We hope the Council will meet early December", he said.

The 11th Plan proposes to focus on social and economic equity. Accordingly, it proposes to substantially increase the union governments spending on agriculture, health, education, social justice as well as the infrastructure sector.

It also aims at reducing poverty by 10 percentage points, generating 70 million new jobs and ensuring electricity in all the villages. In addition, it targets an investment rate of 36.7 per cent and a savings rate of 34.8 per cent.

Speaking at the meeting, Prime Minister Manmohan Singh said everything that is necessary to achieve the target of 9-10 per cent growth during the 11th Plan period, must be done.

Singh pointed out that the size of GBS in the 11th Plan is almost double that of the previous plan.

"These are large increases by any reckoning. This will only be possible if we have strong growth, if tax revenues remain buoyant as they have been in the recent years and if non-Plan expenditure is checked effectively", he said.

SALIENT FEATURES OF ELEVENTH PLAN

Targets 9-10 per cent growth in the five-year period from 2007 to 2012

Size of gross budgetary support in the Eleventh Plan pegged at Rs 14,00,000 crore, almost double that of the previous Plan

Total Plan resources at the Centre and state levels move from around 9.4 per cent to 13.5 per cent, as a share of GDP

Focuses on rapid economic growth reaching out to every nook and corner of India

Seeks to ensure programmes for the empowerment of poorer sections are effective and free of leakages

Plan emphasises revival of agriculture and encouragement to manufacturing with special emphasis on expansion of industrial enterprises

Promises strong effort in promoting programmes that deliver essential services to common man and provide livelihood support

Share of central gross budgetary support allocation to key sectors such as agriculture, irrigation and rural development, health and education increased substantially

Outlay on education up from 7.68 per cent of central gross budgetary support in the Tenth Plan to over 19 per cent in the Eleventh Plan

Health too sees a substantial increase in outlays - both in absolute terms and in its share

Public sector investment in infrastructure to increase substantially, large private investment through PPP mode