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An Essay On The 11th Five Year Plan of India

Dinayak Shenoy Essay
Proper planning is necessary for overall progress and prosperity of a developing country
like India to make it advanced.
A Planning Commission was setup in 1950 by a Resolution of the Government of India,
which derived its objectives and spirit from the Directive Principles of State Policy
enshrined in the Constitution and took responsibility of formulating the national plans
taking on overall view of the needs and resources of the country and making assessments
of their performance. The Planning Commission actually conceives every Five Year Plan
with high expectations and hope that it would avoid the past mistakes and implement the
new ideas in building a more prosperous India. With the same expectations it had
submitted the 11th Five Year Plan Draft on November 9, 2007 and was cleared in a
highly significant meeting presided by the Prime Minister Dr. Manmohan Singh and held
at New Delhi.
As the Chairman of the Planning Commission Dr. Manmohan Singh categorically
expressed concern over the burgeoning oil and food subsides. In his speech, the Prime
Minister pointed to the urgency of addressing "the problem of mounting subsidies in
food, fertilizer and now in petroleum which is recent phenomenon'. According to Dr.
Singh, himself a renewed economist and the key architect of liberalization, a whopping
sum of over Rs. 1,00,000 crore is likely to be spent during the current financial year alone
on these three items. Targeting a percent economic growth in this five year plan the kind
of focus that has given to the development of agriculture sector in the approved
document, the problem of rising subsidy in sectors primarily identified as some of the
drivers of economic growth suggests a trend that is even more worrying. So to no one's
surprise, the Prime Minister in his characteristic posture of a keen and sensible observer
of the situation, asked his Cabinet colleagues and the Commission to "reflect what these
mean for our development options and what developments options these subsidies as
shutting out". He asked whether such large outgo on subsidies mean few schools, fewer
hospitals, fewer scholarships, lower public investment in agriculture and poor
infrastructure".
Dr. Singh also indicated in clear terms that the nation's food security might come under
stress in the next decade. "Global trends in food production and prices and our own
demand pattern of consumption are going to put increasing pressure on both availability
and prices of basic food items", he said, adding the country needs to manage these
pressures and ensure that out food planning adjusts to the emerging market realities"
The full Commission approved the draft the 11th Five Year Plan that began in April 2007
and aims at raising average GDP rate to 9 percent from 7.6 percent during 2002-2007,
while more than doubling the outlay to Rs. 36,44,718 crore. The document seeks to make
growth inclusive by increasing the outlay for priority sector programmes. Some of the
important targets of the 11th Five Year Plan include reducing poverty by 10 percentage
points, generating 7 crore new employment opportunities and ensuring electricity
connection to all villages.
Of the total plan size, the Center's gross budgetary support would be Rs. 14,00,000 crore.
The Plan has also fixed certain important targets which include taking industrial and
services sector growth to 9-11 percent and investment rate of 36.7 percent.
The Plan draft aims to reduce the level of poverty by 10 percentage points by way of
generating 70 million new jobs during the five year period also ensure electricity
connection to all villages. With various monitorable targets set for various priority
programmes at the central and state level, the thrust of the Plan document is on social
sectors, agriculture and rural development.
The education sector is set to be a big beneficiary with the Plan document seeking to
increase the allocation to 19.36 percent of the GBS from 7.68 percent in the Tenth Plan.
In absolute terms, the Centre will be spending Rs. 2,75,000 crore on education during the
11th Plan as compared to Rs. 62,238 crore in the previous Plan. Already, the Government
has drawn up a comprehensive plan to improve primary, secondary and higher education,
including the setting up of new IITs, IIMs and colleges.
As the Prime Minister pointed out, the agricultural growth, having average of about four
percent in the last two years, is likely to remain at the same level during the current fiscal
also. Turning to the issue of more inclusive growth, the PM said that the high nine
percent growth achieved during the first 4 years of UPA regime should not be restricted
to "isolated pockets or to certain sections of society". The growth process, he said, should
be far more broad based and the Plan period must be maintained and the Government
muse ensure that the deliver services of empowerment programmes were effective and
free of leakages, he said.
The major thrust of the Plan is to be on social sector, including agriculture and rural
development, with the draft document proposing to increase the priority sector allocation
to 74,67 percent of the Center's Gross Budgetary Support from 55,20% in the Tenth Plan.
The Plan also proposes to raise investment on infrastructure sector including irrigation,
drinking water and sewage from 5 percent of GDP in 2005-2006 to 9% by 2011-12. The
non-priority sector, however, will received the same amount from the Central
Government as was allocated to it in the 10th Plan and would have to fend for itself. The
allocation towards the non-priority sector has been reduced to 25-33% of GBS from
44.88% in the 10th Plan.
Submitted to RB by Dinayak Shenoy
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Bhartisarda20 3 months ago

•thank you sir it helped us

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