The Hindu Business Line : Panel for bolder disinvestment to meet 11th Plan expenditure target

The Prime Minister, Dr Manmohan Singh, with the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, the Minister of State for Planning and Parliamentary Affairs, Mr V. Narayanasamy, and the Planning Commission Secretary, Ms Sudha Pillai, during the full Planning Commission meeting, in the Capital on Tuesday.

Our Bureau

New Delhi, Sept. 1 The Planning Commission says that to meet the Eleventh Plan expenditure target the Government will have to follow a much “bolder” disinvestment plan.

This emerged at the full meeting of the Planning Commission here chaired by the Prime Minister, Dr Manmohan Singh. The Commission has also called for taking steps to reduce subsidies, especially those for fertiliser and petroleum products.

A Commission paper on ‘The current economic outlook’ presented at the meeting adds that a credible time path of fiscal consolidation from next year onwards is essential to keep possible price pressure under check and to provide room for private investment to expend in the next two years.

GDP outlook

The meeting felt that GDP is likely to grow 6.3 per cent in 2009-10 against the 7-per cent predicted earlier.

“The 6.3 per cent is a reasonable base for this year. We think that the worst will be in the second quarter and may be also in the third quarter. But between January and March 2010 a stronger recovery is expected leading to growth of 6.3 per cent.

“The Ministers endorsed the broad direction. The growth is a remarkable achievement given that in the 1980s and 1990s growth was about 5.8 per cent,” the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, told newspersons after the meeting.

The projection is based on the assumption that the country has recorded a 23 per cent rainfall deficiency up to the end of August and foodgrain output will fall by 18 million tonnes. The Planning Commission has projected growth of 8 per cent in 2010-11 and 9 per cent in 2011-12. “This is optimistic but not impossible,” the Plan paper says.

Public-private tie-up

Delivering the concluding remarks, the Prime Minister said that the underlying strength of the economy will stand the country in good stead as “we seek to return to our high growth target over the next two years.”

Dr Manmohan Singh added that the Government was taking steps to streamline the process so that public-private partnership in infrastructure sector moves faster.

The Planning Commission has also called for extending PPP to new areas of economic and social infrastructure, including health and education.

Mr Ahluwalia said that the current negative rate of inflation might turn positive soon.

“The negative growth was a temporary phenomenon. In September-October, it is likely to be positive.

“If drought is managed well and there is good Rabi crop as well as fiscal consolidation, inflation may well be contained within the comfort zone,” the Deputy Chairman said.

More Stories on : Disinvestment | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page