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PM endorses plan to create 50 million jobs
Monday, 07 October 2002, 19:30 IST
NEW DELHI: Prime Minister Atal Bihari Vajpayee Saturday endorsed plans to create 50 million jobs and reduce poverty from 26 percent to 21 percent by 2007 by aiming at eight percent annual growth.
"We cannot afford to set a lower the growth target if we want to move towards our cherished dream of building an India free of poverty, illiteracy and homelessness, free of regional, social and gender disparities," said Vajpayee at a meeting of the Planning Commission to approve the five-year plan document for 2002-07.
Against the target of 6.5 percent GDP growth during the ninth plan period from 1997-2002, India was able to achieve less than six percent growth.
"This was mainly due to South East Asian economic crisis, sluggish global economy and three years of drought in large parts of the country," said Planning Commission deputy chairman K. C. Pant at a press conference to explain the plan document that would be placed before the cabinet towards month end.
Higher growth is being aimed at during the next plan period "for achieving both social and economic targets, particularly to check rate of unemployment and improve the quality of life of those lacking even basic needs," said Pant.
"Even if the backlog of unemployment cannot be tackled, we are keen that there are no fresh additions."
Currently the organized sector accounts for just nine percent of total employment in the country. With the government having decided to cut down on recruitment and reduce staff strength two percent annually as against average retirement of three percent, the unorganized sector is being looked at to provide more jobs.
While emphasizing the need to accelerate economic reforms, the plan envisages increased government expenditure on infrastructure over the next two years to create more industrial and consumer demand. For the first time, state-wise growth targets have been worked out in consultation with the respective state governments.
The plan document has to be approved by the National Development Council that will meet in the first week of December.
"The plan has been highly decentralized to be able to reach the reforms to the grassroots," said Pant.
The public outlay for the plan at 2001-02 prices is pegged at 
15.92 trillion, out of which the federal plan will have an outlay of 9.21 trillion and the states and union territories 6.71 trillion. The federal budgetary support for the five-year plan is to be 7.06 trillion.
The government is banking on the stalled disinvestments process to generate 780 billion over the next five years at current prices towards meeting the gross budgetary support along with $7.5 billion annually through foreign direct investment.
In addition, domestic savings are expected to contribute 26.8 percent of GDP and external savings 1.6 percent.
"The bulk of the domestic savings and resources will have to come from reduction in government expenditure from 4.5 percent to 0.5 percent of GDP," said Pant.
Several tough and politically unpopular measures are also proposed by the Planning Commission including restriction of subsidies only for the economically weak sections of society both for food and power.
For proper implementation, the Planning Commission envisages a bigger role for the village and sub-district level committees, along with more fiscal authority.
Some of the goals set out in the tenth plan include reducing decadal population growth from 21.3 percent in 1991-2001 to 16.2 percent in 2001-11.
Reducing gender gaps in literacy and wage rates by 50 percent, increasing literacy rate from 65 percent in 1999-2000 to 75 percent by 2007, reducing infant and maternal mortality rates and removing regional and intra-state disparities are among some of the other measures planned.
Special focus is to be given to regions lagging behind in economic growth. This has been noticed not only among different states but within the states also, said Pant.
Source: IANS
15.92 trillion, out of which the federal plan will have an outlay of 9.21 trillion and the states and union territories 6.71 trillion. The federal budgetary support for the five-year plan is to be 7.06 trillion.
The government is banking on the stalled disinvestments process to generate 780 billion over the next five years at current prices towards meeting the gross budgetary support along with $7.5 billion annually through foreign direct investment.
In addition, domestic savings are expected to contribute 26.8 percent of GDP and external savings 1.6 percent.
"The bulk of the domestic savings and resources will have to come from reduction in government expenditure from 4.5 percent to 0.5 percent of GDP," said Pant.
Several tough and politically unpopular measures are also proposed by the Planning Commission including restriction of subsidies only for the economically weak sections of society both for food and power.
For proper implementation, the Planning Commission envisages a bigger role for the village and sub-district level committees, along with more fiscal authority.
Some of the goals set out in the tenth plan include reducing decadal population growth from 21.3 percent in 1991-2001 to 16.2 percent in 2001-11.
Reducing gender gaps in literacy and wage rates by 50 percent, increasing literacy rate from 65 percent in 1999-2000 to 75 percent by 2007, reducing infant and maternal mortality rates and removing regional and intra-state disparities are among some of the other measures planned.
Special focus is to be given to regions lagging behind in economic growth. This has been noticed not only among different states but within the states also, said Pant.
Source: IANS