The draft approach paper to the 12th Five-Year Plan (2012-17) has called for improvement in the country’s electoral process, seeking changes in funding of polls — a demand social worker Anna Hazare too raised during his recent anti-corruption agitation.
The paper, which will be shortly sent to the union cabinet for its approval, also advocated stronger participation of women legislators in the whole process. It stressed the need for passing a law that would strengthen the electoral process in the country and support the already existing mechanisms like model code of conduct.
The approach paper also called for strengthening mechanisms which would deal with corruption even after establishment of institutions like the Lok Pal and Lokayuktas.
It said there was no magic wand in the form of a single intervention so as to achieve results in good governance. “We have to operate on many fronts.”
On the trade-offs between growth and inflation during the 12th FYP, the Commission, which had targeted an annual average growth rate of 9 per cent during the plan period and average inflation of 4.5 to 5 per cent, is of the view that the short-term monetary or fiscal policy aimed at containing inflation might compress growth in the current financial year. However, in the medium-term, high growth will tackle the supply-side bottlenecks and check inflation.
“The real problem,” the paper said, “is that if 9 percent growth on the supply side is not realised, then monetary and fiscal policy will have to adjust to ensure that aggregate demand does not exceed potential output.”
The paper has also called for an investment rate of 38.7 per cent for achieving the targeted 9 per cent growth rate and 41.4 per cent for 9.5 per cent growth. The investment rate in the 11th plan period was 36.4 per cent. The paper had fixed a savings rate of 36 per cent for 9 per cent growth and 38.9 per cent for 9.5 per cent growth. The current account deficit in both scenarios has been pegged at 2.5 per cent of GDP.
