In order to speed up economic growth and make economy more inclusive by focusing on the health sector, National Institution for Transforming India (NITI) Aayog will come out with three-year action plan within two months. The action plan will also consider the impact of demonetisation of high value notes on the economy, especially on informal sector.
In a three-year action plan which will unveil after the Union budget for 2017-18 is presented, the Aayog has made recommendation to increase social sector spending three times, partially by cutting down on mega subsidies as well as diverting extra revenues to sectors such as health and education. NITI Aayog’s action plan will not contain revenue projection for 2017-18, though it will have the details for 2018-19 and 2019-20.
Furthermore, the 12th Plan (2012-17) is the last five-year Plan and from 2017-18, the Centre would adopt a three-year action plan and a fifteen-year vision document. However, the 12th Five-Year Plan appraisal document, prepared by NITI Aayog has made a strong case for clear tax policies and focus on manufacturing, even as it exuded confidence that growth in 2016-17, the final year of the Plan would be 7 per cent to 7.75 per cent.