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Government and Planning

Conceptual framework
• • • • Why Planning? Significance of Planning What is Planning Types of Planning

Conceptual Framework of Planning
i.) Why Planning The spectacular success of the Soviet Five year Plan launched after 1928 prompted all underdeveloped countries of the world to adopt the model of economic planning to eradicate the serious problems of poverty, inequality and unemployment which they were facing because the main objective of Planning is to achieve rapid economic development through proper use of a country’s natural and manpower resources. Indeed Economic Planning had become the foundation stone of economic policy makers al over the world especially during the period 1940 to 1990.

(ii) Significance of Planning
Planning has many fold significance especially for an underdeveloped economy. Since resources whether natural material or capital are severely limited, Planning provide choice for securing the optimum combination of inputs. It helps to identify their deficiencies in the economy and social structure which requires special attention from the point of view of economic growth.

A plan for mobilising resources and savings is a necessary counterpart of the scheme of investment. By facing various critical problems in development and attempting to give them a quantitative dimension, planning is calculated to lead to a higher degree of capital formation than might be otherwise attainable. Planning also paves the way for the acceptance of large institutional changes (by drawing attention to social prerequisites of growth).

What is planning?
• Economic Planning according to H.D. Dickinson “ is the making of major economic decisions, what and how much to be produced and whom it is to be allocated by the conscious decision of the determinate authority on the basis of a comprehensive survey of the economic system as a whole.” The basic aim of planning is supposed to be improvement of living conditions or standard of living of people. • How this is done depends upon the economic circumstances of the country, its stage of political development, its social structure and its method of Government.

Types of Planning
There are different types of Planning. It may be a totalitarian planning under which all individual decisions and preferences are subordinated to the demands of the state as is the case of Soviet Planning. For this purpose it uses various methods of compulsion upon the individual which deprives him of the freedom of choice. Five year plan of the USSR controlled the use of virtually all resources for,

• investment on the one hand and consumption on the other • for public as against private enterprises • for production of necessities as against luxuries • for domestic as against foreign use • for peace or for war • In this type of economy all the economic decisions get concentrated in a single centralised authority.

At the other extreme is the United States which has a plan foe achieving and maintaining high level of employment with minimum Government interference. It is democratic in nature. It is more of an indicative type of planning in mixed economy. Under democratic planning Government conducts its economic planning in a manner which preserves the maximum possible freedom of choice to the individual citizen except in extreme emergency, like war.

In between were various kinds of planned and semi-planned economies such as Czechoslovakia, Poland, Norway, The Netherlands, France etc. India is a mixed democratic economy where the ownership of means of production gets distributed between the state and the private enterprisers. The state has to adopt a proper method of direct and indirect control.

Salient Features of Five Year Plans
• M. Visviswaraya(1934) • Conference of Provincial Ministers under the Chairmanship of Congress President S.C. Bose (1938) • National Planning Committee under Pandit J.L.Nehru • People’s Plan (1944) – M.N.Roy • Bombay Plan (1944) • Gandhian Plan

Evolution Process
Before we discuss Five year plans in India, a discussion on genesis of planning in India will be appreciate.

The importance of Planning for carrying out the task of economic transformation was first emphasized by Shri M. Visviswaraya in 1934 when a published a book “Planned Economy for India” with the objective of doubling the national economy.

In 1938 at a conference of Provincial Minister of Industry held under the Chairmanship of the Congress President Shri Subhas Chandra Bose, a resolution was passed which stated that industrialization was essential for meeting problems of poverty, unemployment, national defence, economic regeneration and a Comprehensive Scheme of National Planning had to be formulated as a slip towards such industrialization. The Conference also commented that a Commission named national Planning Commission should be set up for this purpose and should consist of representatives of the government of provinces and states in the country, FICCI and All India Village industries Association. The Conference also appointed a National Planning Committee under the Chairmanship of Pundit Nehru with Shri K.T. Shaw
Contd..

as General Secretary with a view to doing preliminary work regarding the preparation of a national plan. Although the outbreak of the Second World War and imprisonment of Pundit Nehru thwarted the performance, reports of the sub- committee produced in 1939 and 40 and during 1945 and 1946 helped in crystallizing views on national planning. The setting up of the National Planning Committee nine years before independence, highlighted both the importance of social and economic objectives as also the need to profit from the experience of planned development through National Plans in Russia.
Contd..

Another significant development was the publication by eight prominent industrialists of “A brief memorandum, in two parts, outlining a plan of Economic Development of India”, popularly known as Bombay Plan and release of People’s Plan by Mr. M.N.Roy and drafted by the Post War Reconstructions Committee of India Federation of Labour. Both these publications were released in 1944.
Contd..

The objective of the Bombay Plan was to put forward as a basis of discussion a statement in as concrete a form as possible of the objectives to be kept in mind in economic planning in India, the general lines on which development should proceed and the demand that planning is likely to make on the country’s resources. “The aim of the People’s Plan was to provide for the satisfaction of immediate basis needs of the Indian
Contd..

people within a period of 10 years in respect to food, clothing, shelter, health and education. The problem of poverty being the fundamental weakness it prescribed increased production in every sphere of economic activity.” Although, the surplus production instead of being diverted into a few private pockets must be controlled and made available for reinvestment so as to bring increase in gainful employment and standard of living. The plan regards agricultural reform to be the fundamental of planned economy for India for increasing purchasing power of the masses (by making agriculture a paying proposition) and that nationalization of land should be the first step in agrarian reform. Industrial profit was to be fixed normally at no mere than 3%.

Professor A.K.Das Gupta analyses the significance of these two documents in the preparation of the First Five Year Plan in the following terms: “ Structurally the First Five year Plan may be said to be an offspring of Bombay Plan. The formulation of a growth target, the application of the concept of investment by ‘created money’ which is another name for deficit financing all these are apparently derived from the Bombay Plan. If however the structure is based on the Bombay Plan, its inspiration is derived from ‘national Planning Committee’ and its contents from the official reconstruction programmes. The later emphasis on socialism may perhaps be traced to the framework of ‘People’s Plan’.

A reference to Gandhi Plan or model of growth would be worthwhile. Mahatma Gandhi advocated certain politics with regard to the development of Indian agriculture, industries etc. Acharya S.N.Aggarwal brought out the Gandhian Plan in 1944 and reaffirmed it in 1948. These publications form the basis of Gandhian Planning or Gandhian model of growth. The basic objective of the Gandhian model is to raid the natural as well as the cultural levels of the Indian masses so as to provide a basic standard life. It aims primarily at improving the economic condition of 5.5 lakh villages of India and therefore it lays the greatest emphasis on the scientific development of agriculture and of the cottage industries

1944 also saw the setting up by the then Government of India of a Department of Planning and Development as a reaction to the interest demonstrated by various groups. The Department had stimulated the preparation of post war reconstruction plans by Department of Central Government as well as by provinces and large princely states. The plans at that stage were essentially collections of schemes and projects which were considered worthwhile, and many of them were not worked out well in detail. However, a number of projects executed during the first plan could be traced to intensive activity undertaken during the period.

The interim Government appointed an Advisory Planning Board in October 1046 with Shri K.C. Neogy as Chairman to review the work that had already been done in the field of planning and to make recommendations for the future machinery of planning. The Board submitted its report in December 1946. It recommended: • The appointment of a single, compact authoritative organization for the purpose of planning namely National Planning Commission. The proposed Planning Commission should be advisory in character, the final decision resting with the Government, only in the allocation of the scarce material resources was the Commission’s decision to be final and subject only to an appeal to the Government. The Commission would be non-political body whose member would not fluctuate with changes in political fortunes.

The Board also suggested that in many matters it would be necessary for the proposed Commission to call in other persons for advice and consultation and to set up Committees of experts to assist it. A consultation body should be set up consisting of members of the Planning Commission representatives of provinces and states, representatives of agriculture, industry, commerce, labour, science and other interests. The Commission would lay progress report before this body and the matters requiring cooperation action by voluntary agreement could also be discussed by this body, apart from initiating discussions on any subjects and to make specific recommendations for consideration by the Planning Commission. The Commission strongly recommended the creation of the Central Statistical Office.

However the setting of a Planning Commission was delayed by three years and it was only after the passing of a resolution in January 1950 by the Congress Working Committee recommending to the Government of India the setting up of a statutory Planning Commission that the Government’s intentions to establish a Planning Commission was announced in President’s address to Parliament at the end of January 1950. The President mentioned that Planning Commission was to be established “ so that the best use can be made of such resources as we posses for the development of the nation.

The importance of the statistical information for planning was recognized and it was therefore simultaneously announced that the Government proposed to establish a Central Statistical Organization. The actual announcement of the composition of the Committee was made by the Central Finance Minister in his budget speech on 28th February 1950. And the Planning Commission was established by the resolution of the Government of India dated 15th March 1950.

Government as Planner
• Planning for future economic development means regulatory, promotional, consumer and entrepreneurial action.

Government as Planner
• Despite the declining role of centralized planning and with the advent of indicative planning, role of planning will remain important because:
– States undiminished role in macroeconomic management – Development of infrastructure – Laying down the rules of the game for the private sector – Ameliorating the living conditions of the poor.

Planning Commission
• Planning commission is a constitutional body constituted generally on a five yearly basis. • The planning commission first set up in 1950. • The task was to make an assessment of the material capital and most effective and balanced utilization of these resources. • To indicate the factors which were tending to retard economic development.

Planning Commission
• Five Year Plans
– First five year plan (1951-1956) – Second five year plan (1956-1961), – Third five year plan (1961-1966) – Annual plans (1967,1968) – Fourth five year plan (1969-1974) – Fifth five year plan (1974-1979), non starter – Socialist planning with predominance of the public sector under the framework of a mixed economy with emphasis on development of heavy and capital goods Industry

Planning Commission
• Five Year Plans
– Sixth five year plan (1980-1985) – Seventh five year plan (1985-1990) – Dominance of public sector still persists, but emphasis on maximizing return on investment (ROI) and fuller utilization on capacity and rural development and development of indigenous sources of energy – Financing of the plan and mobilization of resources proved an uphill task

Planning Commission
• Five Year Plans
– Eight five year plan (1992-1997) – Ninth five year plan (1997-2002) – Tenth five year plan (2002-2007) – A bold step towards deregulation, privatization and liberalization.

Five Year Plans
First Five Year Plan Second Five Year Plan Third Five Year Plan Three Annual Plans Fourth Five Year Plan The Ephemeral Fifth Five Year Plan Sixth Five Year Plan Seventh Five Year Plan Two more Annual Plans Eighth Five Year Plan Ninth Five Year Plan Tenth Five Year Plan Eleventh Five Year Plan 1951- 56 1956-61 1961-66 1966-69 1969-74 1974-79 1980-85 1985-90 1991-92 1992-97 1997- 2002 2002- 2007 2007- 2012

Five Year Plans
– First five year plan (1951-1956) – Second five year plan (1956-1961) – Third five year plan (1961-1966) – Annual plans (1967,1968) – Fourth five year plan (1969-1974) – Fifth five year plan (1974-1979), non starter – Socialist planning with predominance of the public sector under the framework of a mixed economy with emphasis on development of heavy and capital goods Industry

Five Year Plans
- Sixth five year plan (1980-1985) – Seventh five year plan (1985-1990) – Dominance of public sector still persists, but emphasis on maximizing return on investment (ROI) and fuller utilization on capacity and rural development and development of indigenous sources of energy – Financing of the plan and mobilization of resources proved an uphill task

Five Year Plans
- Eight five year plan (1992-1997) – Ninth five year plan (1997-2002) – Tenth five year plan (2002-2007) – A bold step towards deregulation, privatization and liberalization. – Eleventh Five Year Plan(2007-2012)

Tenth Five Year Plan 2002-2007 The Tenth Five Year Plan is divided into three parts Volume I – Dimensions and strategies Volume II – Sectoral Policies & Programmes Volume III – State Plans, Trends, Concerns, Strategies In the foreword to the Tenth Plan Document the Prime Minister has spoken of a vision. To quote from the Prime Minister’s word:

“I have a vision of an India free of poverty, illiteracy and homelessness – free of regional, social and gender disparitieswith modern physical and social Infrastructure – and a healthy and sustainable environment. Above all an India which stands tall and proud in the comity of nations, confidence in her capability to face all possible challenges. In short, I dream of an India which is counted among the ranks of developed nations before the end second decade of this century.”

In amplifying his vision the Prime Minister has said: A. Every Indian will be provided with the opportunity to realize his or her full creative potential. The economy will generate one crore work opportunities each year for the next ten years so that their talents and potentials are utilized for the benefit of the nation. B. Every conceivable way must be explored to accelerate the rate of growth of our economy. Doubling the per capita income of the country in the next ten years should be realized. The changing role of the Government and its relationship with the private sector forms the cornerstone of the plan. There are four dimension of this transformation.

First, to bring about drastic improvement in the functioning of our administrative judicial and internal security systems in order to foster a dynamic and vibrant market economy with emphasis on good governance and implementation. Second, removal of barriers to inter-state and intra-state trade and commerce. Third, removal of controls and restrictions on entrepreneurial initiatives so as to create an environment which welcomes entrepreneurship with open arms. Finally, effective delivery of basic social services to the people by transferring to Panchayati Raj Institutions (PRI) both functions and resources so that PRIS become the cutting edge of our three ties Political Structure and the focal point of decentralization.

• • • • • • • • • • • • •

The Plan document has stipulated the objectives taken into consideration the vision of the Prime Minister. The following are the main objectives: 8% growth target for the Tenth Plan Period. Reduction of poverty ratio by 5 percentage points by 2007 and by 15 percentage points by 2012. Providing gainful and high quality employment at least to addition to the labour force over the Tenth Plan period. All children in school by 2003, all children to complete 5 years of schooling by 2007. Reduction in gender gaps in literacy and wage rates by 50 percent by 2007. Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%. Increase in literacy rate to 75% within the Plan period. Reduction in infant mortality rate (IMR) to 45 per 1000 live births by 2007 and 28 by 2012. Reduction of Maternal Mortality Rate (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012. Increase in forest and tree cover to 25 percent by 207 and 33 percent by 2012. All villages to have sustained access to potable drinking water within the Plan period. Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012.

The emphasis is clearly on improvement of Human Development Index a point which is being emphasized by World Development report and the renowned economist Dr. Amartya Sen. There has been a major transformation in development strategy. Industrial growth in future will depend largely upon the private sector’s performance. Position of the public sector will decline relatively as Government Ownership in many existing public sector organizations decline substantially. Government will play the role of a facilitator. Government will play a far greater role in the social sectors where its role will clearly have to expand e.g. infrastructure, particularly rural infrastructure.

A special feature of the Tenth Plan is the presentation of the state wise target in the National Plan which will serve as a catalyst to reinvigorate planning at the state level. This has been done in order to emphasis the importance of ensuing a balanced development for all States and thus the Tenth Plan includes targets for growth rates and social development which are consistent with national targets. This has been outlined in Volume III of the Plan Document.

• The following are the relevant sections in Volume II relating to Sectoral Policiwes and Programmes: Pages Youth & Sports Health Energy Tourism Power Transport Forest & Environment

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73-79 81- 152 759- 800 817- 828 897- 929 931- 1008 1055- 1077

Tenth Five Year Plan
Vision
…An

India free of poverty,illiteracy and homelessness-free of regional ,social and gender disparities-with modern physical and social infrastructures-and a healthy and sustainable environment ...An India which stands tall and proud in the comity of nations,confident in her capability to face all possible challenges …An India which is counted among the ranks of developed nations before the end of 2020

Tenth Five Year Plan (contd)
Vision (contd)
• Every Indian to be provided opportunity to realize his/her full creative potential • The economy will generate 1 crore work opportunities each year for the next ten years to utilise their talents and potentials for the benefit of the Nation • To explore every conceivable way to accelerate the rate of growth of the economy.Doubling per capita income in the next ten years should be realised

Tenth Five Year Plan (contd)
Thrust Changing role of the government and its relationship with the private sector is the cornerstone Four dimensions of this transformation: -bringing about dramatic improvement in the functioning of administrative, judicial & internal security systems in order to foster a dynamic & vibrant market economy with emphasis on good governance & implementation -removal of barriers to inter-state and intra- state trade and commerce

Tenth Five Year Plan (contd)
Thrust(contd) -removal of controls and restrictions on entrepreneurial initiative so as to welcome an environment which welcomes entrepreneurship with open arms -effective delivery of basic social services to the people by transferring to Panchayat Raj Institutions(PRI) both functions and resources with PRI’s becoming the cutting edge of out three tier political structure and the focal point of decentralisation

Tenth Five Year Plan (contd)
Objectives
2. 8% growth target for Tenth Plan period 3. Reduction of poverty ratio by 5 percentage points by 2007 15 percentage points by 2012 4. Providing gainful and high quality employment at least to the addition to the labour force over the Tenth Plan period 5. All children in school by 2003, all children to complete 5years of schooling by 2007 6. Reduction of gender gap in literacy and wage rates by 50 % by 2007 7. Reduction of decadal rate of population growth between 2001 and 2011 to 6.2%

Tenth Five Year Plan (contd)
Objectives (contd)
7. Increase in literacy rate to 75% within the plan period 8. Reduction of Maternal Mortality Rate (MMR) to 2 per 1000 live births by 2007 and to 1 by 2012 9. Increase in forest and tree cover to 25% by 2007 and 33% by 2012 10.All villages to have sustained access to potable drinking water within the plan period 11.Reduction of Infant Mortality Rate(IMR) to 45 per 1000 live births by 2007 and 28 by 2012 12.Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012

Tenth Five Year Plan (contd)
Key Observations
• The emphasis is clearly on improvement on Human Development Index, a point emphasized by World Development Report and renowned economist Dr. Amartya Sen • Major transformation in development strategy: Industrial growth in future will depend largely upon the private sector’s performance. • Position of the Public sector will decline relatively as Government ownership in many existing public sector organisations decline

Tenth Five Year Plan (contd)
Key Observations (contd)
• Government will play the role of a facilitator. • Government will play a far greater role in social sectors where its role has to clearly expand e.g. infrastructure particularly rural infrastructure including soft infrastructures • Presentation for the first time state wise targets in the National Plan which will serve as a catalyst to reinvigorate planning at the state level • Thus emphasising and ensuring balanced development for all states

Eleventh Five Year Plan
Vision
Broad Vision To build on our strengths to trigger a development process which ensures broad-based improvement in the quality of life of the people, especially the poor, SCs/STs, other backward castes (OBCs), minorities and women. The target of 9% GDP growth for the country as a whole is to be achieved in which the economy is much more integrated into the global economy. Achieving 9% growth rate will mean per capita GDP will grow at 7.6% per year to double in less than 10 years.

Vision continued… The vision is not just FASTER Growth but also INCLUSIVE Growth : A growth process which yields broad-based benefits and ensures equality of opportunity for all. Interrelated components • Rapid growth that reduces poverty and creates employment opportunities • Access to essential services in health and education especially for the poor • Equality of opportunity • Empowerment through education and skill development. • Employment opportunities underpinned by the National Rural Employment Guarantee • Environmental sustainability • Recognition of women agencies • Good Governance.

Thrust
2. A continuation of the policies of economic reform which have created a buoyant and competitive private sector capable ob benefiting from the opportunities provided by greater integration with the world A revival in agriculture growth which is the most important single factor affecting rural prosperity Improved access to essential services in health and education (including skill development) especially for the poor, which is essential to ensure inclusiveness and also to support rapid growth A special thrust on infrastructure development which is a critical area for accelerating growth Environmental sustainability which is becoming increasingly important Special attention to the needs of disadvantaged groups Good governance at all levels, Central, State and local Private sector key driver of growth

3. 4.

5. 6. 7. 8. 9.

9.

Ensuring Policy environment that is supportive of this vibrant and globalised private sector. New priorities for the public sector relate to reviving dynamism in agriculture and building the necessary supportive infrastructure in rural areas, expanding access to health and education, especially in rural areas, undertaking programmes for improving living conditions for the weaker sections and for improving their access to economic opportunity. It also includes a major thrust for infrastructure development in general, which is a critical constraint on our development.

5.

Government to provide a stable macroeconomic policy and a very large role for public policy in a number of sectors outlined above. Special focus on education through PPP model. Prime Minister has termed 11 five year plan as a National Education Plan.

7.

Panchayati Raj Institutions and Delivery Mechanism
The Eleventh Plan seeks to substantially empower and use PRIs as the primary means of delivery of the essential services that are critical to inclusive growth. The 73rd and 74th amendments to the Constitution have led to the establishment of about 2.5 lakh elected institutions of local self-government.(about 2.38 lakh in rural areas and the rests in urban areas). As against about 540 directly elected Members of Parliament and about 4500 directly elected members of our state assemblies, we have about 3.2 million elected representatives in the PRIs of which as many as 1.2 million are women. There are more elected women in India alone than in the rest of the world put together. contd..

It is absolutely critical for the inclusiveness of our growth process that these large numbers of elected representatives in our PRIs are fully involved in planning, implementing and supervising the delivery of the essential public services. The Eleventh Plan recognizes that there is a need to build in incentives that will encourage the States to develop functions, funds and functionaries to the PRIs. In order to capture the extent to which this process and empowerment of PRIs has actually progressed in each State, a suitable Devolution Index will be developed and will be called PRI-Empowerment Index.

Objectives: Monitorable Targets
• • • Inclusive growth strategy with 9% GDP growth Not an end in itself only a means to an end Therefore adopting monitorable targets which would reflect multidimensional economic and social objectives of inclusive growth to ensure efficient and timely implementation, these targets have been disaggregated at the level of the states which implement many of the programmes Thus 27 monitorable targets have been identified at the National level at which 13 have been disaggregated at the level of individual states laying great stress on attaining it

27 National Targets
Fall in 6 major categories namely 4. 6. 8. Income and Poverty Education Health

10. Women and Children 12. Infrastructure 6. Environment

Income and Poverty • • • • • • Average GDP growth rate of 9% per year in the Eleventh Plan period Agricultural GDP growth rate at 4% per year on the average Generation of 58 million new work opportunities Reduction of unemployment among the educated to less than 5% 20% rise in the real wage rate of unskilled workers Reduction in the head-count ratio of consumption poverty by 10 percentage-point.

Education • • • • • • Reduction in the dropouts rates of children at the elementary level from 52.2% in 2003-2004 to 20% by 2011-2012. Developing minimum standards of educational attainment in elementary schools, to ensure quality education. Increasing the literacy rate for persons of age 7 years or more to 85% by 2011-12 Reducing the gender gap in literacy to 10 percentage points by 2011-12 20% rise in the real wage rate of unskilled workers Increasing the percentage of each cohort going to higher education from the present 10% to 15% by 2011-12.

Health • Infant mortality rate (IMR) to be reduced to 28 and mortality ratio(MMR) to 1 per 1000 live births by the end of the Eleventh Plan. Total Fertility Rate to be reduced to 2.1 by the end of the Eleventh Plan Clean drinking water to be available for all by 2009, ensuring that there are no slip-backs by the end of the Eleventh Plan. Malnutrition among children of age group 0-3 to be reduced to half its present level by the end of the Eleventh Plan. Anemia among women and girls to be reduced to half its present level by the end of the Eleventh Plan.

• • • • .

Women and Children • • Sex ratio for age group 0-6 to be raised to 935 by 2011-12 and to 950 by 2016-17 Ensuring that at least 33% of the direct and indirect beneficiaries of all government schemes are women and girl children Ensuring that all children enjoy a safe childhood, without any compulsion to work.

Infrastructure • • To ensure electricity connection to all villages and BPL households by 2009 and reliable power by the end of the Plan To ensure all-weather road connection to all habitations with population 1000 and above(500 and above in hilly and tribal areas) by 2009, and al significant habitations by 2015 To connect every village by telephone and provide broadband connectivity to all villages by 2012 To provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016-17.

• •

Environment • • • • To increase forest and tree cover by 5 percentage points. To attain Who standards of air quality in all major cities by 2011-12 To treat all urban waste water by 2011-12 to clean river waters To increase energy efficiency by 20% by 2016-17.

The 13 State-Specific Targets The Eleventh Plan has been formulated in a manner whereby 13 of the 27 monitorable national targets have been disaggregated into appropriate targets for individual States. These are : 1. GDP growth rate
2. Agricultural growth rate 3. New work opportunities 4. Poverty ratio 5. Drop out rate in elementary schools 6. Literacy rate 7. Gender gap in literacy rate 8. Infant mortality rae(IMR) 9. Maternal mortality ratio (MMR) 10. Total Fertility Rate(TFR) 11. Child malnutrition 12. Anemia among women and girls 13. Sex-ratio

Size of the Eleventh Plan The total public sector outlay in the Eleventh Plan (both Centre and states and including their PSEs) is estimated at Rs 3644718 crore. Of tis total, the share of the Centre (including the plans of PSEs) will amount to Rs 2156571 crore, while that of the states and union territories (UTs) will be Rs 1488147 crore.

Key Observations
2. 2. Average Investment rate to rise from 37% in Tenth Plan to 39 % in Eleventh Plan The bulk of increased investment accounting for 78% of the total from private investment and 22% from the public investment The rate of investment will be supported by buoyant of domestic saving rate of 38.4%. Agriculture and Rural Development: - Growth target of4% per annum in agricultural GDP

3.

- The new National Food Security Mission, aims at
increasing cereal and pulses production by 20 million tonnes by concentrating on those areas which have the greatest potential for increase in yields with given technology.

Key Features ( contd….)
4. Education and Skill : -The Eleventh Plan will build on ongoing efforts to strengthen elementary education. - Higher education will be key driver in globalized and knowledge driven world therefore increase the enrollment rate in higher education from about 11% in present to 21% over a 10 annum period. - Skill capabilities prerequisite for labour intensive growth process. Setting up a National skill development mission to expand and restructure the public sector skill development efforts and also to support private skill development initiatives.

Key Features ( contd….)
5.
Health and Nutrition - The National Rural Health Mission for providing broad base improvement in health care for the rural population period. - The Rashtriya Swasthya Bima Yojana for providing population below the poverty line for health insurance Infrastructure Development - Total investment in electric power, roads, railways, ports, airports, telecommunications, irrigation, drinking water, sanitation, storage, and warehousing was around 5% of tge GDP in 2006-07 and the Plan aims at increasing this to about 9% of GDP by the terminal annum 2011-12. Fullest possible use to be made of opportunities to attract private sector investment is wherever feasible PPP MODEL

6.

Key Features ( contd….)
7. Urban Infrastructure - Urbabisation is a natural outcome of the process of development. Urban infrastructure through Jawaharlal Nehru National Urban Renewable Mission (JNNURM) Energy
Integrated Energy Policy for moving to a rational energy policy to meet the threat of climate change

8.

9.

Role of Government - Mobilising resources through deepening of tax reforms and
reduction of subsidies - Public sector will increasingly concentrate in areas that lie in the domain of the state governments, and within the states in the domain of Panchayati Raj Institutions.

Way Forward….
Prime Minister’s observations “The higher rate of growth that we have set out for ourselves, coupled with our thrust on the growth process being inclusive, should ensure that the struggle for the removal of chronic poverty, ignorance and disease will register major gains in the Eleventh Plan . I am confident that the Eleventh Plan will achieve its targets and objectives despite the challenges we face. This would be a major step in realizing our vision of a prosperous, inclusive , happy, and caring India where all citizens reap the benefits of economic development and feel empowered”.