Tuesday 17 April 2012

12th FYP Approach


12th Five Year Plan Approach
(CLASSROOM for Students)
Planning commission clearance: 20th Aug 2011
Approval: 16th Sep 2011
Aim:
       i.            Second generation economic reform
     ii.            Improving Governance
  iii.            Raise Annual Growth 9+
For approval form NDC: Oct 15-16
Emphasis:
       i.            Inclusive growth
     ii.            Governance
  iii.            Corruption
CLASSROOM:
Planning Commission
1930’s
Rudimentary economic planning first began under British Raj
1938
Planned Economy of India” book by Sir M.Visvesvarayya
-
Planning Committee was set up by Subhash Chandra bose and chaired by Jawaharlal Nehru.
1944
Industralist  & economist formulated 4 development plans.
1944-46
Planning board under Colonial Government of India
15th march 1950
Planning commission directly reporting to PM of India
(Pandit Jawaharlal Nehru as its chairman)
Currently
PM – Dr.Manmohan Singh
Ex-Officio Chairman
Mr. Motek Singh Aluwaliah
Nominated Deputy Chairman (Cabinet Rank)

CLASSROOM:
National Development Council
1)    Planning commission works under the guidance of the National Development Council.
2)    The highest deciding body for planning in India.
3)    Formed in: 1953 (To associate states in the formulation of Plan)
4)    Sarkaria Commission on Centre-State Relations recommended the NDC a Constitutional status (Under Article 263, Constitution of India)
5)    Members:
Prime Minister of India
All Union Cabinet Ministers
Chief Ministers/ Administrators of all States & UTs
Members of Planning Commission.
Five Year Plan in India
FYP
Duration
(Priority)
Important Achievement / Emphasis
GDP
Target
Achieved
1st
1951-56
(Agri)
By Pandit J Nehru
(based onHorrod Dowar’s Model)
-   Bhakra Dam & Hirakud Dam
-   1956- five IITs started
-   University Grant Commission setup
Development  Programme
1) Community Development Program (1952) – Overall development of rural area with people’s participation
2.1%
3.6%
2nd
1956-61
(Industry)
Based on Prasanta Chandra Mahalanobis
- Hydroelectric power project & 5 Steel Plant at Bhilai, Durgapur, Rourkee
- Atomic Energy Commission (AEC) formed in 1948 under Homi J. Bhabha
- Tata Institue of Fundamental Research (TIFR) established
- Talent Search & Scholarship program started in 1957.
Development  Programme
1) Intensive Agriculture Development Program (1960-61)– To Provide Loan, Seed, Fertilizer, Tools to the farmers
4.5%

3rd
1961-66
(Agri)
- Improved Wheat Production (Punjab)
- State Electricity Board setup
- State Transportation Corporation formed
- State Secondary Education board formed
Failed FYP – Reasons
1.     Sino-India War 1962
2.     Indo-Pak War 1965-66
3.     Bad Monsoon 1965
5.6%
2.2%
-
1966-69
Plan holiday /  3 Annual plans
-         2 successive years of Draught
-         Devaluation of Currency
-         Erosion of Plan resources
-
-
4th
1969-74
Indira Gandhi Government
- 14 Banks Nationalized
- Green Revolution advanced Agriculture
War & Defence
- Indo-Pak war 1971 & Bangladesh Liberation war.
- Smiling Buddha underground nuclear test 1974 (in response to US deployment of seventh fleet in Bay of Bengal)
5.7%
3.3%
5th
1974-79
-   Electricity Supply Act 1975
-   Indian National Highways System introduced
Emergency Clamed in 1977
-         Indira Government down
-         New Government Moraji Desai
-         Rejected the 5th FYP in 1978
Development  Programme
1)    20 Point program introduced (1975)-Poverty Eradication and raising the standard of living.
2)    Food for work (1977-78)

4.4%
5.0%
-
1979-80
Plan Holiday / Annual Plan
Development  Programme
1)    National Rural Employment Programme (1980)

-
-
6th
1980-85
- First success of Mahalanobis Heavy Industrialization strategy.
-  End of Nehruvian Plan and Rajiv Gandhi become PM
- Family Planning was introduced.

5.2%
5.4%
7th
1985-90
-  Growth of Agri, controlled inflation, Favorable Balance of Payment.
1) Council for Advancement of People’s Action & Rural (1986)
2) Self Employment for urban Poor (1986)
3) Jawahar Rozgar Yojana (1989) – to overcome Rural unemployment
4) Nehru Rozgar Yojana (1989)- to overcome Urban unemployment
5.0%
5.7%
-
1990-92
Plan Holiday/ 2 Annual Plans
- Due to Changing Political Situation
- Economic Instability
- Crisis in Foreign Exchange Reserve (1991) (approx. $1bn)
-
-
8th
1992-97
(Energy)
12th PM Mr.P.V.Narasimha Rao  & Finance Minister Dr. Manmohan Singh
(Rao & Manmohan Model of Economic Development)
-         India’s Free Market Reform
-         Beginning of Privatization & liberalization
-          Modernization of Industries
-         India become member of WTO (1st Jan 1995)
Development  Programme
1)    Employment Assurance Scheme (1993) – employment for atleast 100days in a year
5.6%
6.78%
9th
1997-2002
(Agri / Rural Develop)
Formulated amidst the backdrop of India’s Golden jubilee of Independence.
Development  Programme
1)    Swaran Jayanti Shahri Rozgar Yojana (1997) - gainful employment / self-employment.
2)    Pradhan Mantri Gram Sadak Yojana (2000)
3)    Sampurna Gram Rozgar Yojana (2001)

6.5%
5.35%
10th
2002-07
-   To make India faster growing Economy
Development  Programme
1)    National Food for work Programme (2004)
2)    Rural Employment Guarantee Yojana (2005-06)

7.9%
7.7%
11th
2007-12

GDP-
          Gained to 7.4% (2009-10)from 6.7%(2008-09)
Agriculture-
            4% growth (mid-term review)
Manufacturing-
            Regained to 10.8%(2009-10) from 3.2% (2008-09 Financial Crisis)
Health-
(Public Expenditure in Health = 1% of GDP)
-          Accredited Social Health Worker under NRHM
-         Incentive under Janani Suraksha Yojana


Development  Programme
1)    National Policy on Rehabilitation and Resettlement (2007)
2)    Rashtriya Krishi Vikas Yojana(2007)
3)    Ujjawala (2007) - Prevention of Trafficking.
4)    Swabhimaan (2011) – Financial Inclusion
5)    Bachat Lamp Yojana (2009)
6)    Jawaharlal Nehru National Solar Mission (2010)
8-10%


CLASSROOM:
Inclusive growth
Definition:
        The Rapid process of growth necessary for substantial Poverty elevation, It is pro-poor economic growth.
RBI Initiatives:
ü General Credit Card (GCC)
ü RBI setup – Khan Committee (2004)
ü Financial Inclusion – first featured in 2005 – Pilot project in UT of Pondicherry by K.C.Chakrabarthy (Chairman, Indian Bank)
ü Mangalam (First Village in India – all household provided with banking facility)
ü RBI – june 2010 – all banks to formulate Financial Inclusion Plan (FIP) along with their Business plan.
Ambitious plan to cover village having population above 2000 to have banking facility by 31st march, 2012.
Micro Finance Institution Intiatives:
ü MFI programs are intended to reach poor section of people.
ü National bodies like SIDBI & NABARD – devoting time and financial resources to MFIs.
ü MFI (Development & Regulation) Bill, 2011
o  To advice the central Government on formulation of polices, schemes, to promote Financial Inclusion.
o  Members:
                                                                                           i.      Chairperson – eminent person with banking experience.
                                                                                         ii.      Members – 2 officers – Rank of joint Secretary (Ministry of finance & Ministry of Rural Development)
                                                                                      iii.      Member – officer – Rank of ED from Reserve Bank.
                                                                                      iv.      Member – officer – Rank of ED from SIDBI
                                                                                         v.      Member – officer – Rank of ED from National Bank
                                                                                      vi.      Member – officer – Rank of ED from National Housing Bank
                                                                                    vii.      Other Members – Less than 6 – at least 2 women – with experience in banking, MFI, Rural  Credit.
C.Rangarajan Committee on Financial Inclusion:
ü  Set up by Government of India
ü  Reported in Jan/2008
ü Recommendation
o   National Rural Financial Inclusion Plan (NRFIP)
o   To provide access to Comprehensive Economic Service
                                                                                  i.         50% of the financial excluded rural cultivator by 2012
                                                                                ii.         Remaining household to be covered by 2015
ü Two funds with NABARD
Financial Inclusion Promotion & Development fund (FIPD)
Farmer’s service Centre
Self Help Group
Promoting Rural Entrepreneurship
Developing HR of Banks
Promotion of Resource Centre
Financial Inclusion Technology Fund (FITF)
Funding of  Low cost Technology Solution



1.     Agriculture
2.     Investment & Saving Requirement


10th plan
11th plan
12th Target
For Scenario of Inflation (Avg)


4.5 -5
5 – 5.5
Invest (in GDP)
31.8%
36.4%
38.5%
41.4%
Result (Growth)
7.8%
8.2%
9%
9.5%
3.     Financing Public Sector plan

Gross Budgetary Support (GBS)
11th plan: 4.92
12th plan: 5.75
REASONS for the limited scope (i.e. increase only around 1.5)
Net Tax Revenue
7.4 (2011-12)
­8.91 (2016-17)
Non Tax  Revenue
1.4
¯0.88
Non Debt Capital Receipt (Disinvestment)

¯
Fiscal Deficit
4.6%
¯3%
Aggregate Resource for Centre
14.01%
¯13.11%

4.     Energy Efficiency in Building
Ø Energy Efficiency Mission – avoided generation capacity of 7500MW (first four years of 11th FYP)
Ø Energy Efficiency in Building & Industries
ECBC – National Energy Conservation Building Code
ESCO – Energy Service Company
467 Industries of 8 Sector – Designated Consumer – 35% of Total
Tradable Energy Saving Certificate
Ø Residential Lighting:
a)     Bachat Lamp Yojana(BLY) à CFL to household
b)    Carbon Credits for Investor
Investor in Local Region
¯
CDM project under POA
¯
Investor gets Carbon Credits
CDM
Clean Development Mechanism
POA
Program of Activities

CLASSROOM:
Bachat Lamp Yojana (BLY)
ü    The Aim to replace Incandescent Lamps in households with Energy efficient CFL (by providing CFL @ the cost of Incandescent lamp). The cost difference will be covered by the sale of CER (Certified emission rights) under the CDM (Clean Development Mechanism) of Kyoto protocol.
ü   Program by Government of India
ü   Implemented through BEE (Bureau of Energy Efficient) under Ministry of Power.
ü   One CER is equivalent to one tonne of carbon-di-oxide (tCO2e).
ü   BLY program implemented from February 2009.


Ø Oil & Natural Gas
o   Import component of Domestic Oil Consumption = 77%
o   Import component of Domestic NG consumption = 19%
Ø Power
100 GW capacity creations (28GW to be completed within 11th plan)
Ø Coal - (900 – 1000 mT)
Ø Renewable Energy:
o   National Solar Mission – 22k MW (by 2020)
o   C-WET – Wind Potential – 49k MW
o   By 2019
Cost of Solar electricity generation = Electricity by coal generation.
 (Currently: Solar power cost = 6 times thermal power)

5.     Managing the Environment
Ø The study of Economics of Ecosystems and Biodiversity (TEEB)
Ø Treatment, Storage & Disposal Facilities for hazardous waste management (TSDF)
Ø Cumulative Environment Impact Assessment (CEIA) for vulnerable regions.
Ø India: Mega Biodiversity – 4 Bio Hot Spot
                                                             i.      Himalaya
a.     Alluvial grassland
b.     Subtropical
c.      Broad leaf forest
d.     Alpine meadow
                                                           ii.      NE of India (part of Indo-Burma hotspot)
a.     2 million km^2
                                                        iii.      Western Ghats – endemic assemblage of plant, reptile, amphibians
                                                        iv.      Andaman & Nicobar – island chain (allied to sunda land hotspots of SE asia)
Ø Biodiversity, Marine Environment and Wildlife
                   Biodiversity Act, 2002 and Biodiversity Act,2004 assigning adequate importance of community conservation and management of bio-resources for the benefit of all stakeholders.
6.     National Manufacturing plan
                   To increase manufacturing sector growth to 12-14% over the medium term to make it the engine of growth. It will enable it to contribute 25% of GDP by 2025.
To Provide
Sectors
Large Employment
Textile& Garment, Leather & Footwear, Gems & Jewelry, Food Processing Industries, Handloom
Technology Capabilities
Machine tools, IT Hardware & Electronics
Strategic Security
Telecom Equipment, Aerospace, Shipping, Defence Equipment
Energy Security
Solar Energy, Clean Coal Technology, Nuclear Power Generation
Infrastructure Growth
Heavy Electrical Equipment, Heavy transport, earth moving and mining equipment.
Competitive advantage
Automotive sector, pharmaceuticals and Medical equipment.

7.     Health Sector

FYP
11th (2007-12)
12th (2012-17)
Total Health Expenditure
1.8% of GDP
2.5% of GDP
Major Health issues
1.     AIDS control
2.     Cancer control
3.     Fluorosis
4.     Human Rabies control
5.     Leptospirosis
8.     Education & Skill Development
-         Early Childhood Care and Education (ECCE)
-         Monitoring and Evaluation mechanism of SSA & MDMS
-         Infrastructure for Education through MGNREGA
-         Adult Literacy with Sakshar Mission (Women /SC/ST)
9.     Social & Regional Equity
-         Backward Regions Grant Fund (BRGF)
-         Border Area Development Programme (BADP)
-         Hill Area Development Programme(HADP)
-         Kalahandi, Bolangir & Korapur (KBK)
-         Bihar Special Plan
-         Bundelkhand Special Package
-         Integrated Action Plan for Left wing Extremism
-         Speedy implementation of PESA
-      Speedy implementation of FRA 

No comments:

Post a Comment