Cabinet clears 12th Plan document

The union cabinet today discussed the draft 12th Five Year Plan document (2012-2017), and approved the proposal to place the Plan document before the National Development Council (NDC).

The Plan proposes an acceleration of growth over the plan period to reach 9 per cent in the terminal year, yielding an average growth rate of 8.2 per cent for the plan period as a whole.

The Plan document emphasizes that growth must be both inclusive and sustainable, and to achieve these objectives it proposes a comprehensive game plan in terms of policies and programmes.

The estimates show resource availability for the 12th Plan at Rs80,50,123 crore at current prices for the centre and states taken together. This implies that the public sector resources for the 12th Plan (2012-2017) would be 11.8 per cent of GDP as against 10.96 per cent realised during the 11th Plan (2007-2012).

To achieve the targeted growth rate, the fixed investment rate should increase to 35 per cent of GDP (at constant prices) by the end of the 12th Plan, yielding an average fixed investment rate of 34 per cent of GDP (at constant prices) for the 12th Plan period as a whole.

The projected average rate of gross domestic capital formation in the 12th Plan is 37 per cent of GDP and the projected gross domestic savings rate is 34.2 per cent of GDP. Net external financing needed for macro-economic balance would average around 2.9 per cent of GDP.