Additional GBS for NCMP Objectives in 2004-05

An additional allocation of Rs. 12,000 crore, as Gross Budgetary Support, was made for the Annual Plan 2004-05, over and above Rs.75886.25 crore to meet the principal objectives of the National Common Minimum Programme.  Of this, Rs. 7,275 crore was to be allocated to priority areas indicated in the NCMP for the Central Ministries/Departments for new/ restructured schemes and for enhancing the scope and coverage of existing schemes.  An amount of Rs. 4,725 crore was provided as Central assistance to States/UTs for meeting the objectives of NCMP. Additional Gross Budgetary Support (GBS) for programmes and schemes of priority under NCMP objectives viz. education, health, rural development and drinking water supply etc., were identified and allocations to various central Ministries/Departments as also the Central Assistance to the Plan of the States / UTs were regularised through supplementaries passed by Parliament.

 

Plan allocation for Annual Plan 2005-06

A GBS of Rs. 1,43,496.78 crore has been allocated for the Central Plan and Central Assistance to the States/UT’ Plan for Annual Plan 2005-06.While making Plan Allocations adequate enhancement for all important NCMP programmes, including the seven sectors (“Saat Sutra“) identified by the Prime Minister, i.e. agriculture, water, education, health care, employment, urban renewal and infrastructure was provided and in particular greater attention was paid to the priority areas listed by the National Advisory Council, viz. SSA, Employment Guarantee Scheme (FFW-SGRY), Rural Health Mission, Mid Day Meal, ICDS/Supplementary Nutrition, and Road Network in the North Eastern Region.

 

Plan allocation for Annual Plan 2006-07

A GBS of Rs. 1,72,727.85 crore has been allocated for the Central Plan and Central Assistance to the States/UT Plan for Annual Plan 2006-07.  The Plan allocations have been made keeping in view the goals and objectives outlined in the National Common Minimum Programme of the Government and priorities emerging from the Mid-Term Appraisal of the X Five Year Plan.  In particular, we have been guided by the following priorities in determining the Central Plan allocation:

Ø                   To ensure adequate funding of the flagship programmes (including all components of Bharat Nirman) of the Government;

Ø                   To give priorities for funding for Scientific Departments;

Ø                   Apart from the flagship programmes including NREGP, AIBP, Bharat Nirman, Sarva Shiksha Abhiyan, Mid-Day Meal, National Rural Health Mission, National Horticulture Mission, Micro Irrigation, ICDS, special attention has been paid to agriculture (including Animal Husbandry and Water Resources), Infrastructure (road transport, shipping and railways), and Secondary Education.

Mid-Term Appraisal of the Tenth Plan

The Planning Commission had undertaken the Mid-Term Appraisal (MTA) of the Tenth Plan in consultation with the Ministries/Departments.  The draft Mid-Term Appraisal document was discussed in the Full Planning Commission meeting held on April 5, 2005 and was subsequently approved by the Cabinet and the National Development Council on  June 27-28, 2005, chaired by the Prime Minister.

The MTA revised the annual average target growth rate of GDP at market prices to 7 per cent from the original target of 8.1 per cent.  The growth target of the broad economic sectors such as agriculture, industry and services were revised to 2.2 per cent and 7.6 per cent and 8.3 per cent respectively from the original target of 4 per cent, 8.9 per cent and 9.3 per cent.  Against these targets Indian economy has achieved an annual average growth rate of 7.2 per cent of GDP in the first four years of the Plan.

OUTLAY AND EXPENDITURE

 

Agriculture

Keeping in view the high priority accorded to the agriculture sector in National Common Minimum Programme by the UPA Government, the outlay for the Ministry of Agriculture during the years 2004-05, 2005-06 and 2006-07 has substantially been increased.

 

Ø                   The Plan outlay of the Department of Agriculture and Cooperation (DAC) was increased to Rs. 2650 crore at Budget Estimate (BE) 2004-05 stage; representing a step-up of 22% as compared to B.E. 2003-04 of Rs. 2167 crore.

Ø                   Planning Commission provided an additional gross budgetary support of Rs. 440 crore during 2004-05 for plan programmes of the Department of Agriculture and Cooperation.

Ø                   The plan outlay was raised to Rs. 4179.32 crore (BE) during 2005-06, which represented an increase of 57.7 percent over the B.E. of Rs. 2650 crore for 2004-05.

Ø                   During 2006-07 the outlay for the Department has been further stepped up by 14.8 per cent to Rs. 4800 crore.

Ø                   In the case of the Department of Animal Husbandry, Dairying and Fisheries (DADF), the plan outlay during 2004-05 of Rs. 500 crore (BE) represented a step-up of 66.67 percent over the BE of Rs. 300 crore for 2003-04.

Ø                   Planning Commission provided an additional gross budgetary support of Rs.100 crore during 2004-05 for plan programmes of the Department of Animal Husbandry, Dairying and Fisheries.

Ø                   The plan outlay to DADF was increased to Rs 669.08 crore (BE) during 2005-06 indicating a step up of 33.8 % over the BE of Rs. 500 crore for 2004-05.

Ø                   For the year 2006-07 the plan outlay for the Department is Rs.777 crore which represents a step-up of 16.1% over the outlay for the previous year

Ø                   In the case of Department of Agricultural Research and Education, the plan outlay of Rs.1000 crore (BE-2004-05 excluding IEBR) represents a step up of 29% over the BE of Rs. 775 crore for 2003-04.

Ø                   The outlay been raised to Rs. 1150 crore during 2005-06 (BE) representing a step up of 15% over the outlay for the previous year.

Ø                   For the year 2006-07 the plan outlay for the Department is Rs.1350 crore which represents a step-up of 17% over the outlay for the previous year

 

Agricultural Research

Planning Commission had constituted a Task Group on Revamping and Refocusing of National Agriculture Research System (NARS) under the chairmanship of Dr. M.S. Swaminathan.  The Task Group had submitted its report in February, 2005.  One of the major recommendations is establishment of a National Board for Strategic Research in Agriculture (NBSRA) with an outlay of Rs. 300 crore. The recommendation has already been acted upon by the Government and an allocation of Rs. 50 crore has been provided for the year 2006-07 for National Fund for Strategic Agriculture Research (NFSRA). An Empowered Committee headed by Prof C.N.R. Rao has been constituted to guide and implement the Fund. 

 

Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)

The CCEA in its meeting held on March 16, 2006, has approved the establishment of six AIIMS like institutions of excellence across under-served States of Bihar, Orissa, Chhatisgarh, Madhya Pradesh, Uttaranchal and Rajasthan with the stipulation that further resources, if required, would be raised through the State governments, public private partnership and other available options.  The CCEA also approved the proposal for upgradation of eleven existing medical colleges/institutions to the level of AIIMS with the direction that the names of these eleven institutions be finalised by Ministry of Health & Family Welfare expeditiously and the matter be brought before the Committee.

 

National Rural Health Mission (NRHM)

The Government launched a National Rural Health Mission (NRHM) in April, 2005, to provide integrated comprehensive primary healthcare services, especially to the poor and vulnerable sections of the Society.  The seven year NRHM (2005-12) was launched, with a merger of then separate Departments of Health & Family Welfare, and with a mandate to address the innumerable infirmities across the domain of health care. 

 

The Mission aims to bridge the infirmities in rural healthcare through increased community ownership, decentralization of the programmes to the district level, inter-sectoral convergence and improved primary health care.  The Mission aims to achieve the goal of the National Population Policy and the National Health Policy through improved access to affordable, accountable and reliable Primary Health Care. 

 

Total Sanitation Campaign

In order to meet the Millennium Development Goal of halving the population having access to sanitation facility by 2015 in rural areas, the Planning Commission has increased the allocation for this programme in 2004-05 and 2005-06 the details of which are as below:

 

                                                                                    (Rs crore)

2004-05	2005-06
Allocation: 400.00 Release:367.66	Allocation: 700.00 Release: 660.53

 

BHARAT NIRMAN

 

Water Resources

To unlock the potential of rural India, the Government has launched a time bound business plan named Bharat Nirman to be implemented from 2005-2009. Six components included under the Bharat Nirman are irrigation, drinking water, electrification, roads, housing and rural telephone. Physical targets under the each of the components have been firmed up as under:

Component	Targets to be achieved by Year 2009
Irrigation	To create 10 million hectare of additional irrigation capacity.
Roads	To provide all weather road to every habitation over a 1000 population and above (500 in hilly and tribal areas): remaining 66,802 habitations to be covered.
Electricity	To provide electricity to remaining 1,25,000 villages and to 23 million households.
Housing	To construct 60 lakh houses
Drinking Water	To provide drinking water to 55,067 uncovered habitations by 2009.All habitations with failed sources and water quality problems will be covered
Telecommunication connectivity	To connect remaining 66,822 villages with telephone by 2007.

 

The Programme is being monitored by the Committee on Rural Infrastructure chaired by the Prime Minister. The Deputy Chairman Planning Commission is the Member-Convener of the Committee. The Committee has met thrice in 2005-06.

 

Committee on Infrastructure

A Committee on Infrastructure has been constituted under the chairmanship of Prime Minister, for steering the transition to an enabling policy and regulatory environment that would create world class infrastructure. The Committee includes the Finance Minister, the Deputy Chairman of the Planning Commission and the Ministers in-charge of the respective infrastructure Ministries. The Committee has met frequently during the past one year and has made a significant difference to the pace of decision-making and implementation. 

Action Plan has been articulated for each infrastructure sector. These plans consist of several action oriented measures, which have been taken up for implementation. These measures to be implemented in 2005-2012 are expected to fulfill the existing infrastructure needs, as well as those that will emerge in the medium-term. An overview of the initiatives in each sector is as follows:

Vocational Training and Skill Development

It may be stated that as per direction given in Finance Minister’s Budget Speech, 2004-05, measures for upgradation of 500 ITIs in the country were announced. As a first phase, 100 existing ITIs would be upgraded into Centres-of-Excellence, utilising domestic resources and another 400 ITIs are to be taken up for upgradation through World Bank assistance during the second phase.

The 100 ITIs to be upgraded through domestic resources are located in 26 States/UTs and selected in proportion of the number of Government ITIs in these States/UTs. The objective is to upgrade the existing 100 ITIs in the country into Centre-of-Excellence for producing multi-skilled workforce of world standard by:

Ø                   Introducing new multi-skilling modular courses as per needs of industry.

Ø                   Improving physical infrastructure facilities like buildings, equipment, etc.

Ø                   Adopting new training technology with close involvement of industry and other stakeholders in planning and implementation of training programmes.

Ø                   Empowering these Centres by providing sufficient autonomy in academic, administrative, financial and management dimensions.

Ø                   Introducing short-term training programmes for industrial/service sector personnel as per their specific requirements.

Ø                   Building up partnership with the nearby industries and setting up of Institute Management Committees (IMCs) to make training wholly demand driven.

           

National Food for Work Programme (NFFWP)

The National Food for Work Programme was launched in 150 most backward districts of the country from November 2004. This was a 100 per cent Centrally Sponsored Scheme with foodgrains provided to the States free of Cost.  Transportation cost, handling charges and taxes on food grains were the responsibility of the State. The objective of the programme was to provide additional resources to 150 most backward districts of the country so that generation of supplementary wage employment and provision of food security through creation of need based economic, social and community assets in these districts is further intensified. 

 

Backward Regions Grant Fund

            The Backward Regions Grant Fund has been designed to address the problem relating to regional imbalance.  The scheme aims at catalyzing development in backward areas by (a) providing infrastructure, (b) promoting good governance and agrarian reforms, (c) converging, through supplementary infrastructure and capacity building, the substantial existing development inflows into the districts as part of a well conceived, participatory District Plan.   The Backward Regions Grant Fund would thus address the causes of backwardness more holistically than the standard Government programmes.  The Fund will also seek to bring about focused development of identified backward districts by implementation of programmes selected through peoples’ participation. Panchayati Raj Institutions (PRIs) from the village up to the district level will be the authorities for planning and implementation in keeping with the spirit of the Constitution.

            The scheme is currently under approval of the Cabinet Committee on Economic Affairs.  

Backward Classes

During the year 2005-06, at the instance of the Ministry of Tribal Affairs, the Planning Commission has made an allocation of Rs. 50 crore over and above Rs. 330 crore under the Article 275(1) of the Constitution in the budget (2005-06) of the Ministry of Tribal Affairs exclusively for providing minor irrigation facilities to the tribal lands in the tribal areas.  Also an amount of Rs. 150 crore has been provided for the Annual Plan 2006-07 for the same.

 

Rajiv Gandhi National Fellowship Scheme to provide fellowships for M.Phils and Ph.D. courses for ST students was conceived during the period under report.  The scheme has been approved by the Cabinet for implementation from the financial year 2005-06 through the University Grants Commission.  An amount of Rs. 7.95 crore has already been released during the year 2005-06 to give fellowships to approximately 667 ST students.

 

For providing financial assistance to Scheduled Castes candidates for higher study leading to M.Phil and Ph.D., Rajiv Gandhi National Fellowship Scheme has been approved.  The scheme has been approved by the Cabinet for implementation from the financial year 2005-06 through the University Grants Commission to give fellowships to 1333 SC students.

National Policy for Persons with Disabilities has been brought out during the period under report.

Monitoring of Tribal Sub Plan and Special Component Plan

Standing Tripartite Committee under the chairmanship of Dr. B., Mungekar, Member, Planning Commission, was reconstituted for monitoring and implementation of the strategy of SCSP and TSP on January 16, 2006.  In consultation with the Ministry of Social Justice & Empowerment, it was considered in the Planning Commission to rename Special Component Plan (SCP) as Scheduled Caste Sub-Plan (SCSP).  Additional guidelines were issued to all the concerned State Governments and UT Administrations for formulation of SCSP and TSP alongwith important schemes for implementation.  SCSP and TSP Unit has scrutinized the SCSP and TSP outlay for Annual Plan 2006-07 of various States / UTs and State Governments have been directed to earmark SCSP and TSP funds to the population proportions of SCs and STs in the State. 

 

Education

Planning Commission has agreed to a substantial increase in the allocation of funds for elementary education and literacy programmes from Rs. 7,926 crore in 2004-05 (RE), which included an NCMP additionally of Rs.2,000 crore for Sarva Shiksha Abhiyan (SSA) and Rs.1,232 crore for Mid-Day Meal Scheme (MDMS) in the State Sector, to Rs.1,25,31.76 crore in 2005-06, an increase of 63.25 per cent. Again, the Plan allocation for elementary education and literacy was substantially increased from Rs.12531.68 crore in 2005-06 (RE) to Rs.17128 crore in 2006-07, an increase of 73.16 per cent.  There was a major boost for elementary education flagship programmes, Sarva Shiksha Abhiyan (SSA) and MDMS, with allocation of Rs.11,000 crore and Rs.5348 respectively.  Clear targets and outcomes have also been set for realization of Plan objectives. Outcome, monitoring and qualification for deliverables for the education sector, especially for major programmes such as Sarva Shiksha Abhiyan (SSA), Mid-Day Meal scheme (MDMS) was introduced for the first time.

 

The Mid-Day Meal scheme (MDMS) has been revised w.e.f.  September 1, 2004, in light of the National Common Minimum Programme (NCMP) of the UPA Government, President’s Address to the Parliament and Finance Minister’s Budget Speech.  Cooked mid-day meals is provided in all government and government-aided schools and EGS/AIE Centres at primary level.  The scheme has a provision for conversion cost of Re.1 per child per day for converting grains to nutritious cooked meal.

 

Planning Commission took the initiative to provide relief to North Eastern States, which were facing problems in obtaining full Central Assistance under SSA.  In consultation with DoNER and the Department of Expenditure, the NE States were enabled to meet the State’s share to the extent of 15 per cent through NLCPR Special Dispensation.  These States have now to provide only 10 per cent of funds in their respective budgets for SSA.

 

Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

In order to cope with massive problems that have emerged as a result of  rapid urban growth, it has become imperative to draw up a coherent urbanisation policy/strategy to implement projects in 63 selected cities on mission mode approach. Jawahar Lal Nehru National Urban Renewal Mission (JNNURM) was launched by Government on December 3, 2005, for seven years period beginning 2005-06 with Rs.50,000 crore to be provided by Central Government in the form of ACA Grant to States/UTs.

 

National Urban Information System

The NUIS comprises two major sub-components, viz. (a) Urban Spatial Information System Scheme (USIS), i.e. generation of digital maps through satellite/aerial survey, to meet spatial (maps/images) data/information requirements of urban planning for routine functions and (b) National Urban Databank and Indicators (NUDB&I) to develop town level urban database to support development of indices.            

 

Project has been approved in 2005-06.   The work is proposed to be awarded jointly to Indian Space Research Organisation (ISRO) / (National Remote Sensing Agency (NRSA) and Survey of India.  In the first phase, 137 towns/cities are proposed to be covered at an estimated cost of Rs. 66.30 crore.  Sharing of funds between the Central and State Government would be in the ratio of 75:25. 

 

Computerisation of District and Subordinate Courts

The project for Computerisation of 13,348 District and Subordinate Courts in States and UTs prepared by National Informatics Centre (NIC) at a cost of Rs.384.53 crore,  was approved on March 24, 2005  with NIC as implementing agency.

 

The Prime Minister has formally launched the Project for Information and Communication Technology Enablement of Indian Judiciary on December 5, 2005. 

 

Tsunami Rehabilitation Programme

The Government has approved Tsunami Rehabilitation Programme at Rs. 9870.25 crore comprising Rs. 4,240.17 crore for Tamil Nadu, Rs. 1,441.75 crore for Kerala, Rs. 168.11 crore for Andhra Pradesh, Rs. 518.08 crore for Pondicherry and Rs. 2,676.91 crore for Andaman & Nicobar Islands.  For the year 2005-06, against the BE of Rs. 278.00 crore allocated for the States / UTs RE allocated was Rs. 510.00 crore and the ACA was only Rs. 86.00 crore.  For 2006-07 the tentative allocation is Rs. 2,259.76 crore for the States / UTs with an ACA at Rs. 1,032.00 crore.  Out of destroyed dwelling units of 77,873 so far only 8,436 units have been constructed.  Against the total damaged boats of 61,811 boats repaired and replaced are 42033.  In agriculture the total loss was 20,518 hectares and 33,945 farmers were affected.  In Tamil Nadu and Kerala recovery process has been completed whereas in ANI M/s Swaminathan recommendation is being followed.  In Pondicherry, heavy rains helped in reducing losses.

 

E-Governance

The Government has initiated National E-Governance Plan (NeGAP), which seeks to lay the foundation and provide the impetus for long-term growth of e-Governance in the country. The plan seeks to create the right governance and institutional mechanisms, set up the core infrastructure and policies and implements a number of Mission Mode Projects at the center, state and integrated service levels to create a citizen-centric and business-centric environment for governance. NeGAP in its current form consists of 10 functional components and 26 Mission Mode Projects (MMPs) to be executed over a four year period.  E-Governance has been included in the UPA Government’s National Common Minimum Programme (NCMP).  One of the underlying philosophies of the National E-Governance Plan is to empower the society from its grass roots through use of technology.  The approach is to provide services, which are accessible to the common man through a one-stop-shop by ensuring efficiency, transparency and reliability at an affordable cost.

 

Reconstruction Plan for Jammu & Kashmir

            The Prime Minister announced a Reconstruction Plan for J&K during his visit to the State on November 17-18, 2004, and on June 11, 2005, which included projects relating to power, roads, education, health, physical infrastructure for civil amenities, tourism, agriculture & food processing and other industrial promotion and employment.  Some of these projects include electrification of all villages across the state by 2007, and electrification for all households desiring a connection by 2009 through conventional and non-conventional energy, Upgrading Srinagar-Uri-LOC road, Training to enhance skills of youth for employment / self-employment in the IT / BPO sector through Department of Electronics Accredited Computer Course (DOEACC) Centres at Jammu & Srinagar, Anganwadis in every habitation (approx. 6,817 anganwadi centres), opening employment opportunities for around 14,000 women and assistance to the dislocated & the families of the victims of militancy.

 

 

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