Identifying deceleration in agriculture growth, poor infrastructure and lack of private investment as major impediments to the faster economic growth, the Planning Commission on Friday said it would examine if the 10th Plan target of 8.1 per cent growth was 'feasible' while deciding on the course correction.
A day after Prime Minister Manmohan Singh criticised the previous governments for 'destroying' the performance of the economy, mainly by neglecting the vital agriculture sector, the commission said the Mid-term Appraisal would focus on 'policy correctives' in critical areas in the context of government's National Common Minimum Programme priorities.
Indicating that the 10th Plan growth target may have to be scaled down, it warned against 'populism' as it had contributed to 'disappointing' performance in power sector.
It criticised the previous National Democratic Alliance government for not giving much resources to states. In the last two years, 'Plan allocations have been below expectations. States have not received as much resources as were envisaged through devolution,' the approach paper for the MTA adding said that their position was likely to be 'more difficult.'
Listing out various reasons for dismal resource position in the first two years of the 10th Plan, including the Centre's ratio of tax revenue to GDP, the commission said the appraisal would examine trends in resources and 'identify priority corrective steps.'
As if undeterred by the criticism from Left parties for engaging outside experts from multilateral institutions like the World Bank, it committed to complete the appraisal by the year end for which it would consult experts and representatives of NGOs.
Pointing at low agriculture growth and development of infrastructure at 'far below' the level required for the 8 per cent economic growth, the paper sought review of the regulatory mechanism in each sector and blamed states' populism for the "disappointing" performance of the power sector.
On employment scenario in the country, the paper pointed out that Rs 40,000 crore (Rs 400 billion) would be required to introduce an employment guarantee for rural areas even as it termed the labour laws reform as one of the crucial factors, both for sustained industrial growth and creating high quality job opportunities.
Criticising the lack of the stock-taking of schemes for providing food and nutritional support, the paper said appraisal needs to reflect on this to rationalise the overall food and nutritional interventions made by the government.
The paper emphasised on the need for initiating a fresh approach towards social development and said plan needs to be re-examined from this perspective.
Appraisal may have to outline some steps with regard to panchayati raj institutions, the paper said.
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