Policy initiatives required for 8.5 growth rate: Kumaraswamy

Thiruvananthapuram, July 21 (UNI) Karnataka Chief Minister H D Kumaraswamy today said the eleventh five-year plan must give ''high priority to identifying efficiency promoting policies through political will and consensus'' in order to achieve the goal of 8.5 per cent growth.

''The approach paper projects a growth rate of 8.5 per cent over the eleventh plan period. But for achieving the target, certain policy initiatives are necessary and the plan should give priority to identifying efficiency promoting policies through political will and consensus, in critical areas such as irrigation, electricity and water supply,'' he said at the Regional Consultations on Draft Approach Paper for eleventh Five-Year plan (South Zone) here.

Mr Kumaraswamy also said the Centre should maintain a balance between the requirement for all-round growth and fiscal discipline through implementation of the Fiscal Responsibility Budget Management Act. Moreover, the financial interest of state governments must be kept in view, and market borrowings should be regulated in such a way that interest rates did not get unduly high, he added.

Noting that the outlays on social sectors need to be stepped up in Central andsState plans, he said the concept of revenue expenditure should be changed so as to enable growth. The Chief Minister also expressed confidence of achieving the targeted growth.

Although the approach paper's objective of doubling the growth in the primary sector was laudable, the Chief Minister said the current trends in the state pointed to a structural transition in the composition of its domestic product, with the share of the primary sector declining sharply.

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