Plan panel to revise 12th Plan draft, peg growth rate at 9-9.5 per cent

The full Planning Commission, which met under the chairmanship of Prime Minister Manmohan Singh today, decided to revise the Twelfth Plan growth target upward to 9-9.5 per cent.

The plan panel also decided to set monitorable targets for the various schemes and programmes aimed at inclusive growth.

"There was general agreement that the Planning Commission should focus on policy and governance reforms, while working towards a growth target of between 9.0 to 9.5 per cent for the Twelfth Five Year Plan," the prime minister said at the conclusion of the meeting.

"We should also set monitorable targets related to different dimensions of inclusiveness, and then work to achieve these targets by appropriate design of policy and funding of Plan schemes," he added.

The Planning Commission had projected a lower growth rate in the 12th Plan period, taking into consideration the fiscal constraints of deficit financing.

While the Planning Commission presentation has rightly emphasised the importance of working within the overall target of fiscal consolidation, which is an important constraint, the prime minister said, the Planning Commission and the finance ministry should work together and come up with a realistic assessment of Plan size for the centre and the states.

During the deliberations, various ministries have come up with various suggestions for improving the functioning of the administration.