10th plan sectoral investment target cut by 19%
The Planning Commission has scaled down sectoral public investment targets in the Tenth Plan period by 19% from Rs 1,209,300 crore to Rs 981,100 crore due to government’s inability to raise sufficient resources.
By Rajeev Jayaswal, TNN |
NEW DELHI: The Planning Commission has scaled down sectoral public investment targets in the Tenth Plan period by 19% from Rs 1,209,300 crore to Rs 981,100 crore due to government���s inability to raise sufficient resources and low internal and extra budgetary resources (IEBR) generated by the PSU.
Consequently, the total investment requirements (including public investments) in the Tenth Plan has been revised from Rs 4,081,500 crore to Rs 3,582,200 crore, 12.5% below the original target. The revised outlay would force the government to downscale development programmes in various sectors.
While total investment target in agricultural and allied sector is revised from Rs 219,600 crore to Rs 175,700 crore, public investment in the sector has been declined by 28% at Rs 95,700 crore from the original target of Rs 175,700 crore.
Planning Commission has cautioned that if agriculture as a sector is to be placed on the higher growth trajectory on a sustained basis, it would require significantly higher investments than what is projected. From original estimate of investing Rs 251,600 crore public money under heads of electricity, gas and water supply, Rs 174,500 crore has been set as the revised target for the sector, registering a 31% decline.
Similarly, public investments in manufacturing, mining and quarrying, construction, trade, transportation, financial services and public administration has been significantly reduced. The inability of PSUs in generating requisite internal resources is cited as the reason for the revision of public investment requirements in the manufacturing and electricity sectors.
Consequently, the total investment requirements (including public investments) in the Tenth Plan has been revised from Rs 4,081,500 crore to Rs 3,582,200 crore, 12.5% below the original target. The revised outlay would force the government to downscale development programmes in various sectors.
While total investment target in agricultural and allied sector is revised from Rs 219,600 crore to Rs 175,700 crore, public investment in the sector has been declined by 28% at Rs 95,700 crore from the original target of Rs 175,700 crore.
Planning Commission has cautioned that if agriculture as a sector is to be placed on the higher growth trajectory on a sustained basis, it would require significantly higher investments than what is projected. From original estimate of investing Rs 251,600 crore public money under heads of electricity, gas and water supply, Rs 174,500 crore has been set as the revised target for the sector, registering a 31% decline.
Similarly, public investments in manufacturing, mining and quarrying, construction, trade, transportation, financial services and public administration has been significantly reduced. The inability of PSUs in generating requisite internal resources is cited as the reason for the revision of public investment requirements in the manufacturing and electricity sectors.
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