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Union cabinet approves 12th five-year plan

05 Oct 2012 Evaluate

With the aim to rejuvenate Indian economic growth, the 12th five-year plan (2012-17)  draft which amounts to Rs. 47,70,000 lakh crore with three-fold  increase in plan size, as compared to 11th plan has been approved by the Union Cabinet. The plan aims to achieve annual average economic growth rate of 8.2 %, down from 9 % envisaged earlier. It approves to infuse higher government funding for key social sectors such as health, education and sanitation.

The Planning Commission headed by Prime Minister Manmohan Singh had approved the plan earlier and now the document will be placed before the National Development Council (NDC), the apex decision making body, for the final approval. During the 11th Plan, India has recorded an average economic growth rate of 7.9 % with respect to last year’s 9% target. The projected average rate gross capital formation in the 12th Plan is 37% of GDP and the estimated gross domestic savings rate is 34% of GDP and the net external financing needed for macro-economic balance has been placed at 2.9 % of GDP. 

The 12th Plan seeks to achieve 4% agriculture sector growth during 2012-17. The growth target for manufacturing sector has been pegged at 10 %. The Commission has targeted to bring down the poverty ratio by 10%, currently, 30% of the population is below poverty line. The Union Cabinet also approved the proposal to grant international airport status to airports in Lucknow, Varanasi, Mangalore, Tiruchirapalli and Coimbatore.

The Plan also contains ambitious programmes in health, education, water resource management, infrastructure development, and a number of programmes targeted for inclusiveness, mainly the National Health Mission (NHM), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Pradhan Mantri Gramin Sadak Yojana (PMGSY), the Integrated Child Development Scheme (ICDS) and the National Rural Livelihoods Mission (NRLM). Considerable resources are being allocated for these programmes. It also suggested beneficiary payments to a large number of schemes, which have experienced leakages in the delivery system, may be carried out through the use of the Aadhaar (UID) platform.

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