The Prime Minister Dr. Manmohan Singh has said that the aim of the government is not just growth of GDP but an inclusive and sustainable growth.
Emphasising that Scheduled Castes, Scheduled Tribes and the weaker sections must participate fully in the growth process, he said the most important area for immediate action is to speed up the pace of implementation of infrastructure projects.
Addressing the 12th Plan Meet in New Delhi this morning, the Prime Minister said that the Plan growth target has been revised to 8.2 per cent from 9 per cent as estimated earlier.
Dr. Singh said, short-term economic problems present a challenge and there is a need to revive investment environment. Conceding that the fiscal deficit of the country is too high and is attracting adverse comment from analysts, Dr. Singh said that it must be bought down over the medium term to release domestic resources for productive deployment in the economy.
The Prime Minister said that the programmes in infrastructure development, health, education, water resource management and skill development , Mahatma Gandhi National Rural Employment Guarantee Act, Pradhanmantri Grameen Sadak Yojana and Integrated wasteland Development program are aimed at inclusiveness. Considerable resources are being allocated for these programs for the uplift of Scheduled Castes, Scheduled Tribes and the weaker sections.
Referring to the agriculture growth, he said, it must be accelerated to about 4 per cent which was 3.3 per cent in the 11th plan. He also underlined for speedy growth in the manufacturing sector to generate employment in the country. He said, infrastructure development is vital and it needs a public investment
The Finance minister P Chidambaram has welcomed the revised growth rate target envisaged in the 12th five year plan saying it is a realistic assumption compared to the growth rate during the previous plan periods.He also suggested creation of National Investment Board chaired by the Prime Minister to decide on major investment proposals above 1000 crore rupees in the infrastructure sector.
He said, the gross budgetary support during the plan period has been estimated at 35.68 lakh crore rupees which translates into 5.23 per cent of GDP over the five year period. Mr Chidambaram said direct cash transfer of subsidies in food, fertilisers and petroleum will help in the reduction of non-plan expenditure.
The Finance minister urged the government that the three major subsidies be rolled out across the country by the end of 12th plan through direct cash transfer to the beneficiaries.
Mr Chidambaram said, the main reason behind less actual growth rate than the targated one in each plan period, was the failure to achieve physical targets.
