Government and Planning

8/14/2019 Government and Planning

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Government

andPlanning


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Conceptual framework

Why Planning?

Significance of Planning

What is Planning Types of Planning


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Conceptual Framework of

Planningi.) Why Planning

The spectacular success of the Soviet Five year Planlaunched after 1928 prompted all underdevelopedcountries of the world to adopt the model of

economic planning to eradicate the serious problemsof poverty, inequality and unemployment which theywere facing because the main objective of Planningis to achieve rapid economic development throughproper use of a countrys natural and manpower

resources. Indeed Economic Planning had becomethe foundation stone of economic policy makers alover the world especially during the period 1940 to1990.


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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 aquantitative 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 largeinstitutional changes (by drawing attention to

social prerequisites of growth).


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What is planning?

Economic Planning according to H.D. Dickinson is themaking of major economic decisions, what and howmuch to be produced and whom it is to be allocated bythe conscious decision of the determinate authority on

the basis of a comprehensive survey of the economicsystem as a whole. The basic aim of planning issupposed to be improvement of living conditions orstandard of living of people.

How this is done depends upon the economic

circumstances of the country, its stage of politicaldevelopment, its social structure and its method ofGovernment.


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Types of Planning

There are different types of Planning. Itmay be a totalitarian planning under whichall individual decisions and preferences

are subordinated to the demands of thestate as is the case of Soviet Planning.For this purpose it uses various methodsof compulsion upon the individual which

deprives him of the freedom of choice.Five year plan of the USSR controlled theuse of virtually all resources for,


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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.


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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 moreof an indicative type of planning in mixed

economy. Under democratic planning

Government conducts its economic planning in a

manner which preserves the maximum possiblefreedom of choice to the individual citizen except

in extreme emergency, like war.


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In between were various kinds of plannedand semi-planned economies such asCzechoslovakia, Poland, Norway, The

Netherlands, France etc. India is a mixeddemocratic economy where the ownershipof means of production gets distributedbetween the state and the private

enterprisers. The state has to adopt aproper method of direct and indirectcontrol.


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Salient Features of Five Year Plans

M. Visviswaraya(1934)

Conference of Provincial Ministers under theChairmanship of Congress President S.C.

Bose (1938) National Planning Committee under Pandit

J.L.Nehru

Peoples Plan (1944) M.N.Roy

Bombay Plan (1944)

Gandhian Plan


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Before we discuss Five year plans in India, adiscussion on genesis of planning in India will beappreciate.

The importance of Planning for carrying out thetask of economic transformation was firstemphasized by Shri M. Visviswaraya in 1934

when a published a book Planned Economy forIndia with the objective of doubling the nationaleconomy.

Evolution Process


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In 1938 at a conference of Provincial Minister of Industryheld under the Chairmanship of the Congress President

Shri Subhas Chandra Bose, a resolution was passedwhich stated that industrialization was essential formeeting problems of poverty, unemployment, nationaldefence, economic regeneration and a ComprehensiveScheme of National Planning had to be formulated as aslip towards such industrialization. The Conference alsocommented that a Commission named national PlanningCommission should be set up for this purpose andshould consist of representatives of the government ofprovinces and states in the country, FICCI and All IndiaVillage industries Association. The Conference alsoappointed a National Planning Committee under theChairmanship of Pundit Nehru with Shri K.T. Shaw

Contd..


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as General Secretary with a view to doingpreliminary work regarding the preparation of a

national plan. Although the outbreak of theSecond World War and imprisonment of PunditNehru thwarted the performance, reports of thesub- committee produced in 1939 and 40 and

during 1945 and 1946 helped in crystallizingviews on national planning. The setting up of theNational Planning Committee nine years beforeindependence, highlighted both the importanceof social and economic objectives as also theneed to profit from the experience of planneddevelopment through National Plans in Russia.

Contd..


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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 PeoplesPlan by Mr. M.N.Roy and drafted by the

Post War Reconstructions Committee of

India Federation of Labour. Both thesepublications were released in 1944.

Contd..


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The objective of the Bombay Plan was to

put forward as a basis of discussion astatement 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 developmentshould proceed and the demand that

planning is likely to make on the countrys

resources. The aim of the Peoples Planwas to provide for the satisfaction of

immediate basis needs of the IndianContd..


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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 prescribedincreased production in every sphere of economicactivity. Although, the surplus production instead ofbeing diverted into a few private pockets must becontrolled and made available for reinvestment so as to

bring increase in gainful employment and standard ofliving. The plan regards agricultural reform to be thefundamental of planned economy for India for increasingpurchasing power of the masses (by making agriculturea paying proposition) and that nationalization of land

should be the first step in agrarian reform. Industrialprofit was to be fixed normally at no mere than 3%.


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Professor A.K.Das Gupta analyses the significance ofthese 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 bean offspring of Bombay Plan. The formulation of agrowth target, the application of the concept ofinvestment by created money which is another name fordeficit financing all these are apparently derived from theBombay Plan. If however the structure is based on theBombay Plan, its inspiration is derived from nationalPlanning Committee and its contents from the officialreconstruction programmes. The later emphasis onsocialism may perhaps be traced to the framework ofPeoples Plan.


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A reference to Gandhi Plan or model of growth would beworthwhile. Mahatma Gandhi advocated certain politicswith regard to the development of Indian agriculture,

industries etc. Acharya S.N.Aggarwal brought out theGandhian Plan in 1944 and reaffirmed it in 1948. Thesepublications form the basis of Gandhian Planning orGandhian model of growth.

The basic objective of the Gandhian model is to raid thenatural as well as the cultural levels of the Indian massesso as to provide a basic standard life. It aims primarily atimproving the economic condition of 5.5 lakh villages ofIndia and therefore it lays the greatest emphasis on thescientific development of agriculture and of the cottageindustries


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1944 also saw the setting up by the thenGovernment of India of a Department of

Planning and Development as a reaction to theinterest demonstrated by various groups. TheDepartment had stimulated the preparation ofpost war reconstruction plans by Department ofCentral Government as well as by provinces andlarge princely states. The plans at that stagewere essentially collections of schemes andprojects which were considered worthwhile, andmany of them were not worked out well in detail.

However, a number of projects executed duringthe first plan could be traced to intensive activityundertaken during the period.


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The interim Government appointed an Advisory PlanningBoard in October 1046 with Shri K.C. Neogy as Chairmanto review the work that had already been done in the field

of planning and to make recommendations for the futuremachinery of planning. The Board submitted its report inDecember 1946. It recommended:

The appointment of a single, compact authoritative

organization for the purpose of planning namely NationalPlanning Commission.

The proposed Planning Commission should be advisory incharacter, the final decision resting with the Government,

only in the allocation of the scarce material resources wasthe Commissions decision to be final and subject only toan appeal to the Government.

The Commission would be non-political body whose

member would not fluctuate with changes in politicalfortunes.


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The Board also suggested that in many matters itwould be necessary for the proposed Commission tocall 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 representativesof provinces and states, representatives of agriculture,industry, commerce, labour, science and other

interests. The Commission would lay progress reportbefore this body and the matters requiring cooperationaction by voluntary agreement could also be discussedby this body, apart from initiating discussions on anysubjects and to make specific recommendations forconsideration by the Planning Commission.

The Commission strongly recommended the creationof the Central Statistical Office.


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However the setting of a Planning Commissionwas delayed by three years and it was only afterthe passing of a resolution in January 1950 by the

Congress Working Committee recommending tothe Government of India the setting up of astatutory Planning Commission that theGovernments intentions to establish a PlanningCommission was announced in Presidentsaddress to Parliament at the end of January 1950.The President mentioned that Planning

Commission was to be established so that thebest use can be made of such resources as we

posses for the development of the nation.


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The importance of the statisticalinformation for planning was recognized

and it was therefore simultaneouslyannounced that the Government proposedto establish a Central StatisticalOrganization. The actual announcementof the composition of the Committee wasmade by the Central Finance Minister inhis budget speech on 28th February 1950.And the Planning Commission wasestablished by the resolution of theGovernment of India dated 15th March1950.


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Government as Planner

Planning for future economic developmentmeans regulatory, promotional, consumer

and entrepreneurial action.


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Government as Planner

Despite the declining role of centralizedplanning and with the advent of indicativeplanning, role of planning will remainimportant because:

States undiminished role in macroeconomicmanagement

Development of infrastructure

Laying down the rules of the game for theprivate sector

Ameliorating the living conditions of the poor.


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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 thematerial capital and most effective and balanced

utilization of these resources.

To indicate the factors which were tending toretard economic development.

Pl i C i i


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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 thepublic sector under the framework of a mixed

economy with emphasis on development of

heavy and capital goods Industry

Pl i C i i


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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

Pl i C i i


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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, privatizationand liberalization.

Fi Y Pl


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Five Year Plans

2002- 2007Tenth Five Year Plan

1997- 2002Ninth Five Year Plan

2007- 2012Eleventh Five Year Plan

1992-97Eighth Five Year Plan1991-92Two more Annual Plans

1985-90Seventh Five Year Plan

1980-85Sixth Five Year Plan

1974-79The Ephemeral Fifth Five Year

Plan

1969-74Fourth Five Year Plan

1966-69Three Annual Plans

1961-66Third Five Year Plan

1956-61Second Five Year Plan

1951- 56First Five Year Plan


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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), nonstarter

Socialist planning with predominance ofthe public sector under the framework of amixed economy with emphasis ondevelopment of heavy and capital goods

Industry


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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 ofenergy

Financing of the plan and mobilization of

resources proved an uphill task


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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)


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Tenth Five Year Plan 2002-2007

The Tenth Five Year Plan is divided into three

partsVolume 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 Ministers word:


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I have a vision of an India free of poverty,illiteracy and homelessness free ofregional, social and gender disparities-with modern physical and socialInfrastructure and a healthy andsustainable environment. Above all an

India which stands tall and proud in thecomity of nations, confidence in hercapability to face all possible challenges.In short, I dream of an India which is

counted among the ranks of developednations before the end second decade ofthis century.


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In amplifying his vision the Prime Minister has said:

A. Every Indian will be provided with theopportunity to realize his or her full creative

potential. The economy will generate onecrore work opportunities each year for thenext ten years so that their talents andpotentials are utilized for the benefit of thenation.

B. Every conceivable way must be explored toaccelerate the rate of growth of our economy.Doubling the per capita income of the countryin the next ten years should be realized.

The changing role of the Government and itsrelationship with the private sector forms thecornerstone of the plan. There are four dimension ofthis transformation.


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First, to bring about drastic improvement in thefunctioning of our administrative judicial andinternal security systems in order to foster a

dynamic and vibrant market economy withemphasis on good governance andimplementation.

Second, removal of barriers to inter-state andintra-state trade and commerce.

Third, removal of controls and restrictions onentrepreneurial initiatives so as to create anenvironment which welcomes entrepreneurshipwith open arms.

Finally, effective delivery of basic social servicesto the people by transferring to Panchayati RajInstitutions (PRI) both functions and resourcesso that PRIS become the cutting edge of ourthree ties Political Structure and the focal pointof decentralization.

The Plan document has stipulated the objectives taken intoid ti th i i f th P i Mi i t Th f ll i


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consideration the vision of the Prime Minister. The followingare 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 2001and 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 livebirths by 2007 and to 1 by 2012.

Increase in forest and tree cover to 25 percent by 207 and 33percent by 2012.

All villages to have sustained access to potable drinkingwater within the Plan period.

Cleaning of all major polluted rivers by 2007 and othernotified stretches b 2012.

Th h i i l l i t f


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The emphasis is clearly on improvement ofHuman Development Index a point which isbeing emphasized by World Development reportand the renowned economist Dr. Amartya Sen.

There has been a major transformation indevelopment strategy. Industrial growth in futurewill depend largely upon the private sectors

performance. Position of the public sector willdecline relatively as Government Ownership inmany existing public sector organizationsdecline substantially. Government will play therole of a facilitator. Government will play a fargreater role in the social sectors where its rolewill clearly have to expand e.g. infrastructure,particularly rural infrastructure.


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A special feature of the Tenth Plan is thepresentation of the state wise target in theNational Plan which will serve as acatalyst to reinvigorate planning at thestate level. This has been done in order toemphasis the importance of ensuing a

balanced development for all States andthus the Tenth Plan includes targets forgrowth rates and social developmentwhich are consistent with national targets.

This has been outlined in Volume III of thePlan Document.


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The following are the relevant sections in Volume IIrelating to Sectoral Policiwes and Programmes:

Pages

Youth & Sports -- 73-79

Health -- 81- 152

Energy -- 759- 800

Tourism -- 817- 828

Power -- 897- 929

Transport -- 931- 1008

Forest & Environment -- 1055- 1077


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Tenth Five Year Plan

VisionAn India free of poverty,illiteracy and

homelessness-free of regional ,social and

gender disparities-with modern physical andsocial infrastructures-and a healthy andsustainable environment

...An India which stands tall and proud in the

comity of nations,confident in her capability toface all possible challenges

An India which is counted among the ranks ofdeveloped nations before the end of 2020


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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 opportunitieseach 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 capitaincome in the next ten years should be realised


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ThrustChanging role of the government and its

relationship with the private sector is thecornerstone 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 withemphasis on good governance &implementation

-removal of barriers to inter-state and

intra- state trade and commerce


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Thrust(contd)

-removal of controls and restrictions onentrepreneurial initiative so as to welcome an

environment which welcomesentrepreneurship with open arms

-effective delivery of basic social servicesto the people by transferring to Panchayat Raj

Institutions(PRI) both functions and resourceswith PRIs becoming the cutting edge of outthree tier political structure and the focal pointof decentralisation


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Objectives2. 8% growth target for Tenth Plan period

3. Reduction of poverty ratio by 5 percentage points by2007 15 percentage points by 2012

4. Providing gainful and high quality employment atleast to the addition to the labour force over theTenth Plan period

5. All children in school by 2003, all children tocomplete 5years of schooling by 2007

6. Reduction of gender gap in literacy and wage ratesby 50 % by 2007

7. Reduction of decadal rate of population growthbetween 2001 and 2011 to 6.2%

T th Fi Y Pl ( td)


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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 per1000 live births by 2007 and to 1 by 2012

9. Increase in forest and tree cover to 25% by 2007 and33%

by 201210.All villages to have sustained access to potable

drinking

water within the plan period

11.Reduction of Infant Mortality Rate(IMR) to 45 per1000

live births by 2007 and 28 by 2012

12.Cleaning of all major polluted rivers by 2007 andother

notified stretches b 2012

T th Fi Y Pl ( td)


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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 sectors performance. Position of the Public sector will decline relatively as

Government ownership in many existing public sector

organisations decline


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Key Observations (contd) Government will play the role of a facilitator.

Government will play a far greater role in social sectorswhere its role has to clearly expand e.g. infrastructure

particularly rural infrastructure including softinfrastructures

Presentation for the first time state wise targets in theNational Plan which will serve as a catalyst toreinvigorate planning at the state level

Thus emphasising and ensuring balanced developmentfor all states


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Eleventh Five Year Plan

Vision

Broad Vision

To build on our strengths to trigger a development processwhich 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 tobe 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


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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 employmentopportunities

Access to essential services in health and education especially forthe 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.

Th t


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Thrust2. 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 integrationwith the world

3. A revival in agriculture growth which is the most important single

factor affecting rural prosperity

4. Improved access to essential services in health and education

(including skill development) especially for the poor, which isessential to ensure inclusiveness and also to support rapid growth

5. A special thrust on infrastructure development which is a critical

area for accelerating growth

6. Environmental sustainability which is becoming increasingly

important7. Special attention to the needs of disadvantaged groups

8. Good governance at all levels, Central, State and local

9. Private sector key driver of growth

9 Ensuring Policy environment that is supportive of this vibrant and


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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 inrural 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 ourdevelopment.

5. Government to provide a stable macroeconomic policy and a very

large role for public policy in a number of sectors outlined above.

7. Special focus on education through PPP model. Prime Minister has

termed 11 five year plan as a National Education Plan.

Panchayati Raj Institutions and


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Panchayati Raj Institutions andDelivery Mechanism

The Eleventh Plan seeks to substantially empower and usePRIs as the primary means of delivery of the essentialservices that are critical to inclusive growth. The 73rd and 74thamendments to the Constitution have led to the

establishment of about 2.5 lakh elected institutions of localself-government.(about 2.38 lakh in rural areas and the restsin urban areas). As against about 540 directly electedMembers of Parliament and about 4500 directly electedmembers of our state assemblies, we have about 3.2 million

elected representatives in the PRIs of which as many as 1.2million are women. There are more elected women in Indiaalone than in the rest of the world put together.

contd..

It is absolutely critical for the inclusiveness of our growth


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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 theextent 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


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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 reflectmultidimensional economic and social objectives of inclusivegrowth to ensure efficient and timely implementation, these

targets have been disaggregated at the level of the stateswhich implement many of the programmes

Thus 27 monitorable targets have been identified at theNational level at which 13 have been disaggregated at thelevel of individual states laying great stress on attaining it

27 National Targets


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27 National TargetsFall in 6 major categories namely

4. Income and Poverty

6. Education

8. Health

10. Women and Children

12. Infrastructure

6. Environment

Income and Poverty


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Income and Poverty

Average GDP growth rate of 9% per year in the Eleventh Planperiod

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 than5%

20% rise in the real wage rate of unskilled workers

Reduction in the head-count ratio of consumption poverty by10 percentage-point.

Education


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Education

Reduction in the dropouts rates of children at the elementarylevel from 52.2% in 2003-2004 to 20% by 2011-2012.

Developing minimum standards of educational attainment inelementary schools, to ensure quality education.

Increasing the literacy rate for persons of age 7 years or moreto 85% by 2011-12

Reducing the gender gap in literacy to 10 percentage pointsby 2011-12

20% rise in the real wage rate of unskilled workers

Increasing the percentage of each cohort going to highereducation from the present 10% to 15% by 2011-12.

Health


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Health

Infant mortality rate (IMR) to be reduced to 28 and mortalityratio(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 theEleventh Plan

Clean drinking water to be available for all by 2009, ensuringthat 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 itspresent level by the end of the Eleventh Plan.

.

Women and Children


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Sex ratio for age group 0-6 to be raised to 935 by 2011-12and to 950 by 2016-17

Ensuring that at least 33% of the direct and indirectbeneficiaries of all government schemes are women and girlchildren

Ensuring that all children enjoy a safe childhood, without anycompulsion to work.

Infrastructure


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To ensure electricity connection to all villages and BPLhouseholds by 2009 and reliable power by the end of the Plan

To ensure all-weather road connection to all habitations withpopulation 1000 and above(500 and above in hilly and tribalareas) by 2009, and al significant habitations by 2015

To connect every village by telephone and provide broadbandconnectivity 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 poorby 2016-17.

Environment


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To increase forest and tree cover by 5 percentage points.

To attain Who standards of air quality in all major cities by2011-12

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


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p g

The Eleventh Plan has been formulated in a manner whereby13 of the 27 monitorable national targets have been

disaggregated into appropriate targets for individual States.These are :

1. GDP growth rate2. Agricultural growth rate

3. New work opportunities4. 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


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The total public sector outlay in the Eleventh Plan (bothCentre 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 2156571crore, while that of the states and union territories (UTs) willbe Rs 1488147 crore.

Key Observations


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Key Observations2. Average Investment rate to rise from 37% in Tenth Plan

to 39 % in Eleventh Plan

2. 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%.

3. Agriculture and Rural Development:

- Growth target of4% per annum in agricultural GDP

- The new National Food Security Mission, aims atincreasing cereal and pulses production by 20 milliontonnes by concentrating on those areas which have the

greatest potential for increase in yields with given

technology.

Key Features ( contd )


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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 thepublic sector skill development efforts and also to

support private skill development initiatives.



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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

6. 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 theterminal annum 2011-12.

Fullest possible use to be made of opportunities to attract private

sector investment is wherever feasible

PPP MODEL



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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)

8. Energy

- Integrated Energy Policy for moving to a rational energy policy to

meet the threat of climate change

9. Role of Government

- Mobilising resources through deepening of tax reforms andreduction 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.


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Documents

Government and Planning