Planning Commission Deputy Chairman Montek Singh Ahluwalia today said that country needs lot of tough decisions to accelerate the economic growth and achieve 8 per cent growth rate. He strongly backed the government's decision to hike the price of diesel and said, diesel prices should be deregulated in phases to cut down deficit.

Referring the huge subsidises borne by the government on petroleum products and the resulting budget deficit, he said there should be greater alignment of domestic prices with international rates. He asserted that energy security is very important and there is need to economise energy.

He said that government need to put resources in exploration, production and development.
Dr Ahluwalia said that main focus in 12th five year plan would be on inclusive gowth.

He said, the key sectors on which there will be focus, are Health and Education sectors. He said, for better health care delivery National Health Mission is on anvil. Better infrastructure in rural areas will also be taken care of during the 12th plan.

Dr Ahluwalia said that he was in favour of giving flexibility to States in guidelines of various Centrally sponsored schemes. Mr Ahluwalia said that States will have there say in forming guidelines according to there local needs.