Plan body scans poll promises

Panel points at unviability of populist schemes in common agenda

The Planning Commission, in its approach paper to the mid-term appraisal of the Tenth Plan (2002-07), has questioned the rationale of a number of measures suggested in the National Common Minimum Programme (NCMP).

Whereas the government has given a commitment in the NCMP to eliminate the revenue deficit by 2009, the approach paper says the Fiscal Responsibility and Budget Management (FRBM) Act will hamper resource availability.

The approach paper says "realistic projections about the likely impact of tax reforms suggest that if the fiscal deficit targets are insisted upon, then the gross budgetary support as a ratio of the gross domestic product may actually decline".

"The resources position in the remainder of the Tenth Plan period would be much more difficult than was envisaged at the time the Plan was formulated. The resources constraint will be especially difficult because the NCMP has established new priorities which require a substantial increase in allocation in critical areas, including health, education, irrigation, railway modernisation and employment programmes," the paper added.

It has also questioned the financial viability of introducing an Employment Guarantee Act. On the proposed scheme, the approach paper says preliminary estimates by the Planning Commission put the likely cost of introducing it in rural areas at Rs 21,000-Rs 41,000 crore, which can be shared between the Centre and states.

"The feasibility of embarking on such a commitment will have to be examined on the basis of (i) the overall resources picture and demands of other sectors and (ii) on the basis of the feasibility of increasing the employment content of investment expenditure, especially in rural areas," the paper said.

Moreover, the Plan body has questioned the NCMP's stand that the Essential Commodities Act should not be diluted. The NCMP says "the UPA government will take effective and strong measures to control price hikes of essential commodities. Provisions to deal with speculators, hoarders and black-marketers under the Essential Commodities Act will not be diluted in any way."

However, the approach paper says "it is necessary to examine this issue in depth so that changes that are necessary in the interest of accelerating growth of farm incomes can be made."