Presentation on theme: "EIGHTH FIVE YEAR PLAN(1992-97 ) The planning commission formulated the document detailing the ‘ Objectives, thrust and macro dimensions’ of the Eighth."— Presentation transcript:
EIGHTH FIVE YEAR PLAN( ) The planning commission formulated the document detailing the ‘ Objectives, thrust and macro dimensions’ of the Eighth plan which was accepted in july the entire frame work was designed in view of our relations with changing economic scenario of the world. The eighth plan which was to commence from , could not keep the schedule on account of political changes in years and the plan commence on 1 st April 1992.
FEATURES OF EIGTH FIVE YEAR PLAN Human Development Cooperation by the people Performance strategy Growth of infrastructure Special attention to rural employment Flexible land Correcting fiscal imbalances Integrative plan
OBJECTIVES OF EIGHTH PLAN Generating adequate employment to achieve near full employment level by the turn of the century. Complete eradication of illiteracy among the people in the age group years Provision of safe drinking water and primary health facilities including immunisation for all villages and entire population and complete elimination of scavenging. growth of agriculture to achieve self sufficiency in food and generate surpluses for exports. Strengthening the infrastructure in order to support the growth processes.
PUBLIC SECTOR EXPENDITURE ITEMSPROPOSED EXPENDITU RES %AGE OF TOTAL EXPENDITUR E AGRICULTURE & ALLIED ACTIVITIES RURAL DEVELOPMENT SPECIAL AREA PROGRAMMES IRRIGATION & FLOOD CONTROL ENERGY BIG INDUSTRIES &MINERALS SMALL & RURAL INDUSTRIES TRANSPORT COMMUNICATION SCIENCE & TECHNOLOGY GENERAL ECONOMIC SERVICES SOCIAL SERVICES GENERAL SERVICES TOTAL4,34,100100
FINANCING OF PUBLIC SECTOR EXPENDITURE ITEMSCRORES(Rs ) %AGE OF TOTAL INCOME FRON THE EXISTING TAX RATES AS WELL AS ADDITIONAL TAXES CONTRIBUTION OF PUBLIC SECTOR ENTERPRISES 1,48,14034 LOANS & MISCELLANEOUS CAPITAL RECEIPTS 2,02, NET FOREIGN AID28, DEFICIT FINANCING20, TOTAL4,34,100100
NINTH FIVE YEAR PLAN( ) This plan has been launched in the 50 th year of the independence of our country. The principal task of this plan will be to usher in a new era of people-oriented planning in which not only govts at the centre & the states but the people at large, particularly the poor, can fully participate.
OBJECTIVES OF NINTH FIVE YEAR PLAN Priority to agriculture & rural development with a view to generate adequate employment, productivity & eradication of poverty. Providing basic min. services of safe drinking water, primary health care facilities to all. Ensuring food & nutritional security for all. Accelerating the growth rate of the economy with stable prices. Containing the growth rate of population. Ensuring environmental sustainability of the development process through participation of people at all levels
TOTAL OUTLAY OF PUBLIC SECTOR ITEMSPROPOSED OUTLAY(CROR ES) %AGE OF TOTAL OUTLAY AGRICULTURE & ALLIED ACTIVITIES36, RURAL DEVELOPMENT74, SPECIAL PROGRAMME3, IRRIGATION & FLOOD CONTROL57, ENERGY2,21, INDUSTRY & MINERALS71, TRANSPORT1,24, COMMUNICATION48, SCIENCE & TECHNOLOGY26, GENERAL ECONOMIN SRVICES15, SOCIAL SERVICE1,89, GENERAL SERVICES12, TOTAL8,75,
FINANCING OF NINTH FIVE YEAR PLAN ITEMSCRORE(R s) %AGE REVENUE FROM TAXATION AT EXISTING RATES1,25, CONTRIBUTION OF PUBLIC SECTOR ENTERPRISES 3,56, LOANS & MISCELLANEOUS RECEIPTS3,33, NET FOREIGN ASSISTANCE60, DEFICIT FINANCING00 TOTAL8,75,
FEATURES OF NINTH FIVE YEAR PLAN Proper co-ordination Balanced development To reduce disparities Investment planning Long term fiscal policy Foreign trade & investment policies
ACHIEVEMENTS OF NINTH FIVE YEAR PLAN Achievable growth target : In view of the difficult economic situation prevailing in the country national development council lowered the growth rate in feb1999 to 6.5% as against 7% growth rate suggested in approach paper to ninth plan in Liberty to state govts to decide size of plan : The states now have the freedom to determine the size of their plan. Earlier than the ninth plan states used to propose the specific size of their plan to planning commission. Under the new procedure now first of all the planning commission, after consulting the union ministry of finance, will indicate the state govts the expected assistance from the centre available to states. Then the state govs would plan accordingly, keeping in view the central assistance.
Federal in nature : New feature of ninth plan has been incorporating in to it the federal nature of India’s polity. Besides giving freedom to states about size of their plans, the provision has been made for states to allocate resources as among sectors & sub sectors as well. Re-orientation of plan priorities : The due importance has been given to the development of infrastructure by allocating about 72% of plan funds to irrigation, energy, transport & communications & social services. Market oriented policy making : The fixing of targets in details for several activities is no longer done now as it used to be done once. Nor is planning commission concerned much with what to produce, when to produce & how to produce. Market will decide on its own these problems of allocation on the basis of price, cost & profits
Clear cut role for public sector : Private sector has been assigned a more crucial & wider role besides clearly recognising the area of state intervention in economic & social infrastructure. Well chosen objective of improvement in standards of living : Eradication of poverty & provision of basic min. services such as foods will also improve standard of living of people. Employment : The objectives in ninth plan aim at improvement in employment situation by increasing production employment along with growth in general. Ninth plan has also provided for education & training for skill formation so as to enhance workers capabilities.
DRAWBACKS OF NINTH FIVE YEAR PLAN Contradictory : There are contradictory policies being persuaded by the govt. vis-à-vis public sector. On one hand, the govt. continues a programme of disinvestment of highly profitable public sector undertakings. On the other hand conceding larger pay packets to public sector enterprises employees is bound to erode the extra-budgetry resources of public sector enterprises. Non-plan expenditures : 48% of the central plan & 72% of the states plan are to be funded by borrowings & miscellaneous capital receipts. This is likely to impose heavy int. burden which will jack up non-plan expenditures.
Problem in decentralisation : Decentralized planning may not be up to a satisfactory level. Financial resources have yet to be alloted in many cases. Co-operatives, another institution for decentralised planning still funtion as a department of the govt. & not people’s institution. Difficulties of implementation : The positions of the public sector, private sector & the market are in a state of flux. As a result, the initiation of new projects gets delayed. Also there is a mess of the rules & regulations, with controls still existing in certain lines. Silent on price policy : Ninth plan is just silent on price policy & has not outlined a framework for controlling prices which is the main cause of increasing administrative costs & other govt. expenditures.