Cabinet likely to discuss Mid Term Appraisal tomorrow
The Cabinet is tomorrow likely to discuss the Planning Commission`s mid-term appraisal of the XI Five-Year Plan (2007-12), in which it scaled down the growth projection for the period from nine per cent to 8.1 per cent.
New Delhi: The Cabinet is tomorrow likely to
discuss the Planning Commission`s mid-term appraisal of the XI
Five-Year Plan (2007-12), in which it scaled down the growth
projection for the period from nine per cent to 8.1 per cent.
Sources said that if the mid-term appraisal gets the
Cabinet nod, the same would be placed before the National
The mid-term appraisal (MTA) was placed before the Full
Planning Commission meeting headed by Prime Minister Manmohan
Singh on March 23.
In the MTA document, the commission had scaled down the
growth rate for the current Plan to 8.1 per cent from 9 per
cent in the wake of the global financial crisis that slowed
the pace of economic expansion.
The commission had projected in the MTA that the economy
would expand by 8.5 per cent in the current fiscal and rise to
9 per cent in 2011-12.
It is a practice that after getting the full Planning
Commission`s clearance, the MTA document is placed before the
Cabinet and thereafter before the National Development Council
(NDC) for final approval.
Headed by the Prime Minister, the full Planning
Commission comprises key Cabinet ministers, including Finance
Minister Pranab Mukherjee and Agriculture and Food Minister
Sharad Pawar, Deputy Chairman Montek Singh Ahluwalia and all
the full-time members of the plan panel.
The Commission had set an average annual growth target of
9 per cent for the Eleventh Plan -- beginning with 8.5 per
cent in the first year and closing with 10 per cent in the
last year of the Plan period.
The MTA document said the economy exceeded expectations
in the first year of the Eleventh Plan (2007-08) with a growth
rate of 9 per cent, but the momentum was interrupted in
2008-09 because of the global financial crisis.
Following the global meltdown, the growth rate slipped to
6.7 per cent in 2008-09 from over nine per cent in the
preceding three years. Thereafter, the growth recovered to 7.4
per cent last fiscal.
Buoyed by the recovery since the last meeting of the full
Planning Commission in September 1, 2009, the document had
said, "The economy would be well positioned for transition to
a growth rate higher than 9 per cent in the Twelvth Plan
In order to achieve a high growth rate, the commission
suggested the government should focus on fiscal consolidation
and maintain an investor-supportive economic environment.