(a) whether the Government have formulated a 14-Point Programme
to tackle slump in the economy;
(b) if so, the details thereof;
(c) whether the Government have also decided to reduce non-compulsory
expenses;
(d) if so, the steps taken in this regard;
(e) whether the Government have prepared the draft of 10th Five Year
Plan; and
(f) if so, the main features of the same?
MINISTER OF STATE IN THE MINISTRY OF FINANCE ( SHRI BALASAHEB VIKHE PATIL)
(a) & (b): There is no such proposal. However, the Prime Minister
in his address at the forty-ninth meeting of the National Development
Council on September 1,2001 drew attention to some areas
(14 in number) where there is need for urgent action. The trends
in the economy are under constant review and policy measures
undertaken as and when necessary keeping in view the broad
policy objectives and emerging trends. With a view to promoting
growth, the broad strategy has been enunciated in the Budget
Speech for 2001-02. The budget for 2001-2002 has provided
enhanced central plan outlays for key infrastructure sectors
and increased emphasis has been placed on accelerating capital
investment expenditure. Besides, Reserve Bank of India on the
basis of a review of macro-economic and monetary developments
took certain monetary measures in October 2001 to meet credit
growth and support revival of investment demand consistent with
price stability. These measures included further reduction in
the bank rate from 7 per cent to 6.5 per cent, rationalization
and reduction in the Cash Reserve Ratio for the banking system
and reduction in the maximum interest rate chargeable on export
credit by1.0 percentage point for a period of six months with
effect from September 26, 2001.These specific measures to
stimulate demand in the backdrop of budget strategy are expected
to have a favourable impact on growth.
(c) & (d): The Government is conscious of the need for better
fiscal management. With a view to achieve fiscal consolidation,
the Budget for 2001-02 emphasises expenditure management through
the process of bringing about structural changes in the
composition of Central Government expenditure, economy in
non-plan revenue expenditure while improving the quality of
expenditure. To this end the Budget contains a number of
initiatives which among others include restricting fresh
recruitment to one per cent of total civilian staff strength,
revision in user charges for services provided by the Government
and its agencies keeping in view the increased cost of these
services etc. Further, with a view to reduce interest burden,
most administered interest rates were reduced by 1.5 per cent
as of March 1, 2001. Besides, the Fiscal Responsibility and
Budget Management Bill, 2000 was introduced in Parliament
in December 2000. This Bill includes provisions relating to
ceilings on debt, deficit and borrowing.
(e) & (f): The Tenth Five Year Plan is under preparation. However,
Approach Paper to the Tenth Five Year Plan (2002-07) released by
the Planning Commission has envisaged an average growth in real
gross domestic product of 8 per cent per annum. To this end, the
Approach Paper has envisaged a target gross investment rate (as a
proportion of gross domestic product at market prices) of 32.6
per cent for the Tenth Plan. Besides, Approach Paper has also
indicated reduction of poverty ratio by 5 percentage points by 2007.