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Cabinet defers nod to draft Ninth Plan, to study it in depth

The Union Cabinet today deferred the approval of the Ninth Five Year Plan as ministers wanted a detailed discussion on the draft plan paper.

Briefing newspersons after a one-hour Cabinet meeting, which was presided by Prime Minister Atal Bihari Vajpayee at his official residence, an official spokesperson said the ministers felt that the plan document ''needs further consideration and consultation.''

The Ninth Plan is a voluminous document and needs in-depth study before it receives approval of the Cabinet.

A special meeting of the Cabinet will be held shortly to discuss and approve the Ninth Plan.

The plan, which has been already cleared by Vajpayee in his capacity as the chairman of the Planning Commission, envisages an annual economic growth rate of 6.5 per cent.

The draft plan with budgetary support of Rs 3.74 trillion has lowered the estimates of the economic growth rate from seven per cent in view of the recessionary conditions.

Once the plan gets the nod from the Cabinet it will be placed before the National Development Council for final approval.

The NDC meeting will be attended by chief ministers of all states so that they could express their views on this national document.

The finalisation of the plan was delayed due to political uncertainties and subsequent mid-term polls.

The plan will incorporate the action-plans prepared under the direction of the prime minister. The action-plans are in the areas of agriculture, physical and social infrastructure and information technology. The implementation of the action-plan would cost an additional Rs 200 billion.

The draft Ninth Plan has a time-bound action-plan of doubling the food production and making India hunger free in ten years.

The Plan will be cleared by the National Development Council by March.

This was stated in New Delhi by the minister of state for railways, Ram Naik. He said the NDC would hold a meeting in this regard.

He said the government attached priority to introducing the latest and sophisticated information technology in the Ninth Plan.

It is learnt the Planning Commission has incorporated altered priorities of the BJP government in the draft Ninth Plan.

The approach to the Ninth Plan was approved by the NDC nearly two years back. It was decided then that investment rate during the Plan will be 28.3 per cent.

Domestic savings were envisaged at 26.2 per cent, fiscal deficit at 4.1 per cent while the current account deficit was anticipated at 2.1 per cent. Exports were expected to grow by 14.5 per cent while imports were estimated at 12 per cent. However, latest indications from the commission speak of a sharp increase in the fiscal deficit, fall in exports as well as imports.

The draft plan will have a comprehensive proposal to double food production by the year 2010 and specific approach to accelerated growth in social and physical infrastructure, greater emphasis on information technology and a comprehensive national water policy.

Social action plans drawn up for the purpose have already been approved by the states and if the commission clears the document, the NDC meeting can be expected sometimes in the middle of February or early March.

Copies of the document will have to be made available to the sate governments and Central ministries for their consideration. Normally a gap of six weeks is required between Cabinet approval of the plan and holding of the NDC meeting.

UNI

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