ROAD MAP FOR SOCIO-ECONOMIC
DEVELOPMENT LAID FOCUS ON REDUCING REGIONAL
DISPARITIES
Laying roadmap for
the socio-economic development of the country for the next five-year
was the single most significant achievement of the Planning Commission
during the year. The Tenth Five year Plan which was approved by
the National Development Council only last week has laid emphasis
employment generation, reducing regional disparities and improving
social infrastructure together with poverty reduction. In order
to achieve these targets the commission has set a target of 8
per cent growth rate for this period.
To achieve
these targets the planning commission has evolved a multi-pronged
strategy which aims at efficient use of funds ear-marked for development
both at Centre and States, close monitoring of social targets,
special emphasis on least developed districts, growth targets
for each State and priority to key labour intensive sectors. Realizing
the fact that there exists variance in both potential and constraint,
the Commission has has this time broken down the national targets
to the State level. A separate volume on States has been introduced
for the first time to enable them better focus their development
plans by more careful consideration of the sectoral pattern of
growth and its regional; dispersion within the State. To facilitate
this process, the Planning Commission is preparing a series of
State Development reports, which will take stock of the capabilities
of each State and develop appropriate strategies.
To focus
on sectoral investments and on schemes and programmes, the Tenth
Plan has laid out policy and institutional reforms required for
each sector both at Centre and in States. The plan panel has identified
a few key issues: fiscal deficit; stabilisation function of the
plan; public-private partnership; need to accelerate and expand
reforms; reforms for the poor; problems of urbanisation; and connecting
major rivers. To address these concerns, the constitution of four
NDC committees has been suggested on: governance reforms; barriers
to internal trade; creating an investor-friendly climate; and
empowerment of PRIs.
The Tenth Plan public
sector outlay, at 2002-02 prices, is proposed to be Rs.15,92,300
crore out of which the Central Plan will have an outlay of Rs.9,21,291
crore and the outlay for the States & UTs will be Rs. 6,71,009
crore. The Central budgetary support to the Plan is targeted at
Rs.7,06,000 crore.
KEY REFORMS MEASURES
In order to ensure
that the growth momentum is maintained through greater private
initiatives, attention will have to be paid to both the demand
and supply sides of the economy. The Tenth Plan has identified
specific measures to improve efficiency, unleash entrepreneurial
energy and promote rapid and sustainable growth.
Agriculture is to
be the core element of the Tenth Plan both in terms of its effects
on poverty reduction and employment generation and as an important
source of aggregate demand. The agricultural sector continues
to be hamstrung by a plethora of controls, which were introduced
during an era of shortages. Most of these have today become unnecessary,
and indeed retard the development of this sector. Key reforms
for the agriculture sector identified in the Plan include: Eliminating
inter-state barriers to trade and commerce, amending essential
Commodities Act and Agriculture Produce Marketing Act, liberalising
agri-trading, agri-industry and exports, encouraging contract
farming and permitting leasing in and leasing out of agriculture
lands, replacement of various acts dealing with food by one comprehensive
‘Food Act’, permit futures trading in all commodities and removal
of restrictions on financing of stocking and trading.
Despite considerable
reforms that have already taken place in the non-agricultural
sectors, there continue to be a number of policy limitations on
the efficient functioning of markets, which need to be corrected
if the desired acceleration in growth is to be achieved. Some
key reform measures in the non-agricultural sectors include: repeal
of SICA, and strengthening bankruptcy and foreclosure laws to
facilitate transfer of assets reform of labour laws policy reforms
for village and small scale sectors to improve credit, technology,
marketing and skill availability; and phased de-reservation of
small scale industries, early enactment of Electricity Bill, Coal
Nationalization Amendment Bill and Communication Convergence Bill,
abolish restrictions and encourage decontrol of private road transport
passenger services and private sector participation in road maintenance
and early adoption of a Civil Aviation Policy, establishment of
a regulatory framework for the sector and development of major
airports with active private participation.
REGIONAL BALANCE AND FOCUS ON
STATES
Growing regional
imbalances are a matter of concern and the Plan aims at promoting
balanced and equitable regional development. The plan gives a
state-wise break-up of the targets in order to provide the requisite
focus. The need for urgent policy and administrative reforms has
also been recognized. Some initiatives to address these issues
are: Rashtriya Sam Vikas Yojana, which envisages special assistance,
conditional on reforms, for 100 most backward districts, Bihar
and KBK region of Orissa and a wider reforms agenda for all states;
National Human Development Report which enables inter-state development
analysis and benchmarks; State Development Reports to lay down
road maps for development; Reform-based initiatives for power,
irrigation and urban development sector, core plan strategy for
States and special focus on North-East.
GOVERNANCE: THE KEY TO SUCCESS
Governance is perhaps
one of the most important factors for ensuring that the Plan is
realized, envisaged. Some steps required in this direction are:
improved people’s participation, especially through strengthening
Panchayati Raj institutions and urban local bodies, involvement
of civil society, especially voluntary organisations, as partners
in development, enactment of the Right to Information Act, Civil
service reforms for improving transparency, accountability &
efficiency; security of tenure; a more equitable system of rewards
and punishments, rightsizing both the size and role of Government,
revenue and judicial reforms and using information technology
for good e-governance.
TASK FORCE ON
EMPLOYMENT OPPORTUNITIES
In its endeavour
to creating one crore additional employment opportunities each
year commitment, the Planning Commission had set up a Task Force
on "Employment Opportunities" was set up under the Chairmanship
of Shri Montek Singh Ahluwalia, Member, Planning Commission to
suggest employment opportunities for 10 crore people over the
next ten years. A special group on targeting 10 million Employment
Opportunities per year over the 10th Plan period was
set up by the Planning Commission in September 2001. The Group
finalized its report, which was released by the Deputy Chairman,
Planning Commission, on 28.5.2002. The report was broadly accepted
at the meeting of the Prime Minster’s Economic Advisory Council
held on 13th July 2002 and employment generation was
included in the action plan announced there. The Special Group
identified sectors and sub-sectors in the economy, which could
be given more stress to generate additional employment. These
sectors are: agriculture and allied, small and medium industries,
information technology, education and health etc.
STUDY GROUP ON
DEVELOPMENT OF SMALL SCALE ENTERPRISES
The Deputy Chairman,
Planning Commission, also released the report of the Study Group
on Development of Small Scale Enterprises. The Study Group was
constituted under the chairmanship of Dr. S.P. Gupta, Member,
and Planning Commission. The report highlighted the capability
of the SSI sector to provide the required employment at lowest
investment.
PREPARATION OF
NATIONAL HUMAN DEVELOPMENT REPORT OF INDIA
The Planning Commission
prepared National Human Development Report of India on a priority
basis as a prelude to the Tenth Plan. The first-ever National
Human Development Report-2001 was released by the Hon’ble Prime
Minister on 23rd April, 2002. The Report is an attempt
at putting together status of human development at the State level
in terms of indicators that are contextually relevant, reflect
the societal concerns and the development priority of the country.
An important objective of the report is to develop a consensus
on the conceptual and methodological framework of the human development
approach in the country.
PRADHAN MANTRI
GRAM SADAK YOJANA (PMGSY)
The primary objective
of the Pradhan Mantri Sadak Yojana (PMGSY) is to provide connectivity,
by way of all weather roads to the unconnected habitations in
the rural areas, such that habitations with a population of 1000
persons and above are covered in three years (2000-2003) and all
unconnected habitations with a population of 500 persons and above
by the end of the Tenth Plan Period (2007).
Accelerated Power
Development Programme (APDP)/ Accelerated Power Development and
Reforms Programme (APDRP)
APDP scheme was
initiated with a budget of Rs. 1000 crore in the Annual Plan 2000-01.
In view of the paramount importance of power sector reforms, the
APDP has been modified to include a strong reform component. Under
the new Accelerated Power Development and Reform Programme, it
is proposed to include a 50 per cent investment component while
the balance will constitute a reform-driven incentive stream.
VISION 2020 FOR INDIA
The Planning
Commission has initiated work on preparing a National Vision 2020
document. A Committee was set up for this purpose under the Chairmanship
of Dr. S.P. Gupta, Member, and Planning Commission. The Committee
has suggested the following vision to be attained by the year
2020, such as promoting small families, elimination of poverty,
reduction of inequalities, realising full employment, empowering
and supporting women and girls.
RASHTRIYA SAM VIKAS YOJANA (RSVY)
With a view to focus
on the developmental programmes primarily to fill gaps, for backward
areas which would help reduce imbalances, speed up development
and help the backward areas to overcome poverty, besides facilitating
the States to move up the ladder of reforms, a new initiative
in the form of the ‘Rashtriya Sam Vikas Yojana’ (RSVY) is being
operationalised in the Tenth Plan. The RSVY will be a cent per
cent grant so as to act as an incentive for States to take up
reforms. This would be in addition to the existing flow of funds
under ongoing schemes. Release of funds will be performance based.
STATE DEVELOPMENT
REPORTS
In order to provide
a quality reference document on the development profile of States,
make an inter-State comparison and help to determine strategies
for accelerating growth, the Planning Commission initiated the
practice of preparation of State Development Reports.
QUARTERLY PERFORMANCE
REVIEW MEETINGS (QPR)
With a view to ensuring
timely and effective implementation of approved projects/programmes/schemes,
as well as efficient utilisation of outlays/resources, it was
decided to introduce a system of Quarterly Performance Review
(QPR) meeting in the Planning Commission with the representatives
of the Central Ministries/Departments, including the representatives
of the Ministry of Statistics & Programme Implementation and
Department of Expenditure (Plan Finance-II), Department of Economic
Affairs and Chief Secretaries of the concerned Sates, under the
Chairmanship of the concerned Member, Planning Commission to review
the physical and financial progress of individual schemes/programmes/projects.
NATIONAL TECHNOLOGY
MISSION FOR BAMBOO DEVELOPMENT
India is well endowed
with resources of Bamboo, the second largest in the world ranking
only behind China in availability, diversity and dispersal. There
are almost one hundred and thirty species, spread across eighteen
genera. The most profuse areas are in the North East, which accounts
for almost two thirds of growing stock and considerable variety.
Keeping in view the vast resource potential, Planning Commission
has emphasized the need to adopt a holistic integrated approach
for using Bamboo as the engine for development of the country.
It has stressed the need for processing bamboo into value-added
products and realizing economic and marketing opportunities.
REPORT OF THE
STEERING GROUP ON FOREIGN DIRECT INVESTMENT
The
Steering Committee on Foreign Direct Investment (FDI) for Tenth
Five Year Plan, which was set up in August, 2001 under the Chairmanship
of Shri N.K. Singh, Member, Planning Commission The Steering Committee
on Foreign Direct Investment (FDI) for Tenth Five Year Plan, which
was set up in August, 2001 under the Chairmanship of Shri N.K.
Singh, Member, Planning Commission submitted its report to the
Prime Minister on 6th September, 2002. The Committee
has identified the reasons for low FDI and recommended further
liberalization in regard to sectoral caps on foreign equity as
well as the entry routes to investment – that is, whether automatic
or subject to approval.
