March 1: Public sector outlay for the Ninth Plan has been stepped up by 35.7 per cent in real terms to Rs 8,75,000 crore at 1996-97 prices. The approved Eighth Plan outlay was Rs 4,34,100 crore.The energy sector has been given the highest allocation at 25.4 per cent of the total public sector outlay followed by agriculture, irrigation and rural development (19.4%), social services (20.7%) and transport (14.2%).
The financing pattern for the Ninth Plan does not visualise recourse to deficit financing. The Plan for the states visualises substantial efforts for mobilisation of additional resources through budgetary measures as well as measures to be undertaken by state enterprises despite an increase in central Plan assistance to states.
Mobilisation of resources would depend on a number of measures which need to be taken by the centre, states and public sector undertakings. These include strict fiscal discipline both in terms of containment of non-Plan expenditure and increase in tax and non-tax revenue,increase in tax-GDP ratio at the centre to 11.5 per cent by the end of the Ninth Plan and maximisation of generation of internal resources by the central PSUs through higher productivity and periodic price revision to meet rising input costs alongwith mobilising resources through borrowings in the capital market.
Of the total outlay, Rs 508,021 crore has been earmarked for centre including union territories without legislature and Rs 366,979 crore for states including union territories with legislatures.
Out of the aggregate resources of the centre (Rs 675,176 crore), the internal and extra budgetary resources of central PSUs account for Rs 301,126 crore. The budgetary resources of the centre account for the balance Rs 374,000 crore. Of this, Rs 167,105 crore is provided as central assistance to plans of the states and UTs with legislature.
This represents 45.5 per cent of the states plan as against the corresponding share of 43.6 per cent in the Eighth Plan.
The document states that additionalallocation to the tune of Rs 70,000 crore would be needed to fully meet fund requirements for providing safe drinking water, universalisation of primary education and primary health care and to ensure nutrition security for children.
The Planning Commission has recommended mobilisation of sizable additional resources by the states, both in terms of tax and non-tax measures. These include tax reform, rationalisation of tax structure, specially the sales tax.
States should also be empowered to tax services sector, impose consignment tax and revise royalty rates for major minerals as per recommendations of the Sarkaria Commission.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
