Montek to argue for higher expenditure in Plan Panel meet

New Delhi, Oct 17 (UNI) Planning Commission Deputy Chairman Montek Singh Ahluwalia will vociferously argue before the full meeting of the Planning Commission tomorrow for at least a 2.5 per cent increase in the Eleventh Plan expenditure, necessitated by higher outlays in education, health, agriculture and infrastructure.

The targets for these ambitious programmes is necessitated by the commmitments under the National Common Minimum Programme(NCMP) and the eminent economist has assiduously worked out details in this regard.

According to informed sources in the Commission, Dr Ahluwalia is of the view that while there was no mechanical relationship between the target rate of growth and plan size, much of the growth acceleration will come from increased private investment and from improvements in efficiency.

The exercise undertaken by the Commission shows that the increase in education will entail a hike in expenditure by 0.8 per cent, National Rural Health Mission and other Central Sector increase by 0.75 per cent, agriculture by 0.5 per cent and infrastructure by 0.9 per cent. This works out to an increase of 2.95 per cent.

According to Dr Ahluwalia, the Eleventh Plan expenditure increase, however, can be restricted to 2.5 percentage points by weeding out the unproductive schemes.

The meeting, to be headed by Prime Minister Manmohan Singh, has on its agenda the approval of the Draft of Eleventh Plan (2007-11).

After the size of the Plan is agreed at the full plan panel meet tomrrrow, it will go to the Cabinet and then to the National Development Council(NDC). This could take about a month's time.

The Plan size proposed by the Commission is based on a targeted growth rate of 9 per cent of the GDP in Eleventh Plan.

As the strategy of the next Plan is growth with inclusiveness, the Plan Size will entail larger outlays on the part of Centre, States and PSUs.

Commission sources say the Sarva Shiksha Abhiyan(SSA) for primary education will have to continue with efforts to improve quality. The Eleventh Plan must also launch a major effort at expanding secondary schooling, which will be more expensive since trained teachers are unavoidable.

Dr Ahluwalia is of the view that the University system is seriously underfunded and needs to be rejuveneted. Besides, a great deal of structural reform of higher education is essential.

The Moily Committee recommendations, expected shortly, will present a heavy demand for funds for the Central institutions of higher education to accomodate the impact of OBC reservations.

The Commission feels that given increased effort by State governments, the average budgetary resources for the health sector in the Centre and States combined could increase by about 0.75 per cent.

The enhanced outlays in agriculture are required for higher outlays for irrigation, substantial investment in programmes of land development and moisturising conservation in dry areas, thrust to programmes under the Rainfed Areas Authority and the National Agricultural Insurance Scheme.

The Commission has estimated that infrastructure investment in roads, ports, airports, power, irrigation and urban infrastructure needs to be increased from under five per cent of GDP to nearly 8 per cent over the Eleventh Plan period if the targeted growth rate of 9 per cent is to be achieved. The average increase in the Eleventh Plan over the Tenth Plan on these counts is at least 1.75 per cent of GDP, the sources said.

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