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PLANNINGDEFINITION :
Planning is the iterative process of making
decisions about the effective tasks to achieve the
objectives
Planning is a process of determining the
objectives of administrative efforts and devising the
means calculated to achieve them.
• Millet
Planning is a process of setting formal guidelines
and constraints for the behaviour of the firm.
-Assoff and Brudinharg
Why to Plan ???
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After independence, India was in dire conditionsand needed to start acting soon
Some of the problems necessitated need for animmediate plan:Vicious circle of povertyForeign Trade Need for Rapid industrializationPopulation pressure
Development of Natural resourcesCapital Deficiency & Market imperfections
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HEALTH AND FIVE YEAR PLAN
Recognising the health as animportant contributory factor in theutilisation of manpower and in theuplifting of the economic condition ofthe country, the Planning commissiongave considerable importance of healthprogrammes in the five year plans.
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OBJECTIVES
The broad objectives of the health programmeduring five- year-plans are as follows:
Control and eradication of major communicablediseases
Strengthening of basic health services throughthe establishment of primary health centres andsub-centres,
PopulationDevelopment of health manpower resources.
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PURPOSES
For the purposes of planning ,health sectorhas been divided into the following subsectors
Water supply and sanitationControl of communicable diseasesMedical education ,training and researchMedical care including hospitals ,dispensaries
and PHCsPublic Health ServicesFamily planning andIndigenous system of medicine
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COMMUNITY DEVELOPMENT PROGRAMME
The community programme was
launched in India during 1952.
It is the process which is designed to
promote better living of whole community
,with active participation by the community
itself along with government efforts.
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First Five Year Plan(1951-1956)
Introduced by the then PM Pt. J. Nehru between the period 1951-56
The one responsible -- Planning Commission
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Objectives:Improve living standards of the people in India which was possible by making judicious use of Natural Resources.
Total outlay of this plan -- A massive Rs.`2069 CrThe segregation – Industrial sector Energy, irrigationTransport, Communications and RehabilitationsSocial servicesDevelopment of Agriculture & community
Objectives: (cont…)
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Importance was given to agriculture and irrigation; Power to decrease reliance on Food Grain, Imports & resolve Food crisis
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ACHIEVMENTS
A few things that happened …………Mettur, Hirakud & Bhakra Dams were a few projects
that were startedGovt. decides to improve Railway Services, Road
tracks & Civil Aviation, also decides to providesufficient funds to the Industrial sector & to takemeasures for the growth of SSI’s.
The growth in GDP achieved by India was 3.6% p.a.The target was ………………….2.1% p.a.
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HEALTH AND FIRST PLANPRIORITIES
Provision of water supply and sanitation
Control of malaria
Preventive health care of the rural population
through the health units and mobile units
Health services for the mother and children
Education and training and health education
Self sufficiency in drugs and equipment
Family planning and population control
Second Five Year Plan (1956-1961)
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Objectives:
To increase the national income by 25%
To make the country more industrialized
Development of the public sector
To increase employment opportunities so that every citizen gets a job
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Achievements:
Five steel mills at Bhilai, Durgapur, and Jamshedpur
Hydroelectric power projects
Production of coal increased
More Railway lines were added in the north east
Improved the living standards of the people
The large enterprises in seventeen industries were nationalized
The Tata Institute of Fundamental Research – established in 1957 as a research instituteAtomic Energy Commission -- Homi J. Bhabha (Founder, 1958)
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HEALTH AND SECOND FIVE YEAR PLAN
Establishment of institutional facilities to serve as a basis from which services could be rendered to the people locally and in surrounding territories.
Development of technical manpower through appropriate training programmes
Intensifying measures to control widely spread communicable diseases
Encouraging active campaign for environmental hygiene.Provision of family planning and other supporting services
for raising health standard of the people.
Third Five Year Plan(1961-1966)
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Objectives:
More stress to agriculture SubsidiesSufficient help
To increase the national income by 5% per annum
Making India self sufficient in food grains by increasing agricultural production
Minimizing rate of unemployment To establish equality among all the people of the country
Achievements:
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The Panchayat Organization was formed
Many primary schools were started in rural areas
State electricity boards and state secondary education boards were formed
State road transportation corporations were formed
Many cement and fertilizer plants were also built
OBJECTIVES:
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Water supply environmental sanitation [rural &
Urban]
Health care [ hospitals and dispensaries]
Control of communicable diseases
Medical education, research and training
Other services- health education, school
health, MCH, mental health, health insurance ISM
and Family planning.
HEALTH AND THIRD FIVE YEAR PLAN
Fourth Five Year Plan (1969 to 1974)
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At this time Indira Gandhi was the Prime Minister.The Govt. nationalized 19 major Indian banks.
Objectives:To reform and restructure its expenditure agenda (Defense became one major expense)
To facilitated growth in exports
To alter the socio economic structure of the society
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ANNUAL PLANS [1966-69]
The fourth FYP which was to commence
from April 1966 was postponed till 1969
due to Indo-pak war. During this
intervening period [1966-69] was
covered by Annual plans with an outplay
of Rs.6,756 crores in the public sector of
which the expenditure on health
programmes was Rs.316 crores[4.7%]
Achievements:
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Great advancement has been made with regard to India's national income
Spending on war efforts reduced industrial spending
Tested the first nuclear weapon with Smiling Buddha in 1974
Considered as one of the emerging powers
Food grains production increased to bring about self sufficiency in production
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HEALTH AND FOURTH PLAN
During this period the revised estimate of public sector outlay
was 16,774 crores of which Rs 1,156 crores [7.2%] were
allotted to health sector.
OBJECTIVES
Certain objectives of the Mudaliar Committee were the base
for the fourth FYP in relation to health. These are as follows:
To provide an effective base for health services in rural areas
by strengthening the primary health centres.
Strengthening of sub-divisional and district hospitals to
provide effective referral services for primary health centre,
and
Expansion of the medical and nursing education and training
of paramedical personnel to meet the minimum technical
manpower requirements.
Fifth Five Year Plan (1974 to 1979)
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Objectives:
To reduce social, regional, and economic disparities
Reduce poverty and to attain self sufficiency in agriculture and defense
Reducing rate of Unemployment both in Urban & Rural sectors
Encourage Self-employment
Encourage growth of Small scale industries
Prevent over population
Achievements:
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Food grain production was above 118 million tons due to the improvement of infrastructural facilities
Bombay High had shot up the commercial production of oil in India
OBJECTIVES
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Increasing accessibility of health services to rural areasCorrecting regional imbalanceFurther development of referral services by removing
deficiencies, in district and sub-divisional hospitals.Integration of health, family planning and nutrition Intensification of the control and eradication of
communicable diseases especially malaria and small pox Quantitative improvement in the education and training of
health personnel by converting unipurpose workers to multipurpose workers,
Development of referral services by providing specialists attention to common diseases in rural areas.
HEALTH AND FIFTH PLAN
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ROLLING PLAN (1978–1980)
The Janata Party government rejected
the Fifth Five-Year Plan and introduced
a new Sixth Five-Year Plan (1978-
1983). This plan was again rejected by
the Indian National
Congress government in 1980 and a
new Sixth Plan was made.
Sixth Five Year Plan (1980 to 1985)
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6th Five Yr Plan -- Known as Janata Govt. Plan
It’s Existence – Tourism industry increased, I.T sector develops!!!!!The issues – Rajiv Gandhi being the PM, & hence emphasized on Industrial DevelopmentSome agreed, but the communist groups protested
Objectives
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Family Planning concept introduced, but not forcibly
To introduce min Needs Program for the poor
Improve the Tourism Industry
Aimed for rapid Industrial Development
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ACHIEVEMENTS:
Planned GDP growth - 5.1% a year, achieved 5.4%
Speedy Industrial development
The transport and communication system also
improved
Government investments in the Indian healthcare
sector
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HEALTH AND SIXTH PLAN
Minimum needs programme, which was started during fifth
plan continued with the same objective as follows.
Elementary education
Adult education
Rural health
Rural water supply
Rural road
Rural electrification
House sites / houses for rural landless labourers,
Environmental improvement of slums
Nutrition
Seventh Five Year Plan (1985 to 1989)
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Congress comes into power
Objectives:
To upgrade the industrial sector
To generate more scope of employment
Improved facilities for Education to girls
Increase productivity of small and large scale
farmers
Achievements:
Using modern technology
Full supply of food, clothing, and shelter
Making India an Independent Economy
Anti-poverty programs
Eighth Five Year Plan (1992 to 1997)
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Objectives:
Modernization of Industrial Sector
The plan focused on technical development
Strengthening the infrastructure
Involvement of Panchayat raj, Nagarpalika, N.G.O's & people's participation
Many flawed plans & Policies were rectified in this plan. During this period India was the only lucky one to become a member of the WTO (1st Jan 1995)
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ACHIEVEMENTS:
Production of food increased from 51 million to 176.22 million
GDP shoots up to a whooping 6.3% ………..the target was 1.6%
The plan was more successful than the 7th year plan
24.4% domestic savings, it contributed 10.1% to the GDP in regards to Export Earnings
Was a plan that was more successful in meeting its objectives as compared to other plans?
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Objectives:
To prioritize rural development
To generate adequate employment opportunity
To stabilize the prices
To ensure food & nutritional security
Encourage Women improvement
To create a liberal market for Private investment
Objectives: (cont…)
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To provide for basic infrastructural facilitiesEducationWaterHealthTransportEnergy
Achievements:
Yes!! India managed to bring together the giant power, support & effort of public, private & all level of Govt.
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STRATEGIES•Structural transformations and developments in the
Indian economy.
•New initiatives and initiation of corrective steps to
meet the challenges in the economy of the country.
•Efficient use of scarce resources to ensure rapid
growth.
•Combination of public and private support to increase
employment.
•Enhancing high rates of export to achieve self-
reliance.
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STRATEGIES (Cont..)
•Providing services like electricity,
telecommunication, railways etc.
•Special plans to empower the socially disadvantaged
classes of the country.
•Involvement and participation of Panchayati Raj
institutions/bodies and Nagar Palikas in the
development process.
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PERFORMANCE•The Ninth Five-Year Plan achieved a GDP
growth rate of 5.4% against a target of 6.5%
•The agriculture industry grew at a rate of 2.1%
against the target of 4.2%
•The industrial growth in the country was 4.5%
which was higher than that of the target of 3%
•The service industry had a growth rate of 7.8%.
An average annual growth rate of 6.7% was
reached
Tenth Five Year Plan (2002 to 2007)
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The Tenth Five Plan will cover a period from 1st April 2002 to 31st march 2007.The Tenth plan provides an opportunity at the start of the new millennium, tobuild upon the gains of the past but also to address the weakness that haveemerged. Some of the gains of the past are:
I. The growth rate of the national income has important fromaverage of about 5.7% in the eighties to an average of about6.5% in the Eighth and Ninth Plan periods making India one ofthe ten fastest growing developing countries.
II. The percentage of the population in poverty has continued todecline.
III. Population growth has decelerated below 2% for the first timein four decades.
IV. Literacy has increased from 52% in 1991 to 65% in 2001.V. Sectors such as software services and IT enabled services have
emerged as new source of strength, creating confidence aboutIndia’s potential to be competitive in the world economy.
However, there are several aspects of development whereour progress is clearly disappointing. Some of the weaknessesare:
I. The decline of unemployment is relatively high atabove 7%.
II. More than half of the children 1-5 years old in ruralareas are under nourished.
III. The girl children are suffering even more severemalnutrition.
IV. The infant morality rate has stagnated at 72 per 1000for the last several years.
V. As many as 60% of rural households and about 20% ofurban household do not have a power connection.
VI. Only 60% of urban households have taps within theirhomes.
VII. The Tenth Plan must learn from past experience. Itmust strengthen what has worked well, but it mustalso avoid repeating past failures. It is with objectivethat the tenth Five Year Plan is being drawn up as aReform Plan instead of merely having a Resource Plan.
Objectives of the Tenth Plan:
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Main objectives of the tenth plan are:
Rate of growth of national incomeGrowth rate of per capita incomeImprovement in Quality of life Reduction in povertyProvision of gainful employmentProvision of universal educationReduction in gender gaps Reduction in growth of populationIncreases in Literacy RateReduction in Infant Mortality RateReduction in Material Mortality Ratio (MMR)Environmental ProtectionProvision of Drinking WaterGrowth, Equity and SustainabilityBalanced Developed in all States
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Strategy of the Tenth Plan:
1. Acceleration2. Redefining the Role of Government3. Agricultural Development4. Employment5. Social Safety6. Environment Conservation7. Competitive
Eleventh Five Year Plan (2007-2012)
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Introduction:
The National Development Council has approved the11th Five Year Plan for the period from 2007 to 2012.The plan document is entitled “Towards Faster andMore Inclusive Growth”.
Infrastructure• Roads• Ports• Airports• Railways• Power• Irrigation• Telecom/IT
EducationYouth AffairsSports and Physical EducationHealth
Objectives/Targets of plan:
Women and ChildrenIncome and PovertyEnvironment
Strategy of 11th Plan:
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The main elements of strategy of 11th Plan are:1. Rapid Growth2. Inclusive Growth3. Main Priority Areas4. Main Focus on Private Sector
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Main Areas of 11th Plan:
Main areas of 11th plan are as follows:1. Agriculture2. InfrastructureHighwaysAirportsRailwaysPower Generation
3. Rural Infrastructure: Specific Targets of Bharat NirmanProgramme for the Period (2005-2009)IrrigationRural RoadsRural HousingRural WaterRural ElectrificationRural Telephone
4. Industry5. Employment6. Education7. Health8. Social Sector
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Assessment of Economic Planning in India:
o Achievements:
1. Increase in National Income2. Increase in Per Capita Income3. Increase in the Rate of Capital
Formation4. Development of Agriculture5. Industrial Development6. Infrastructure Development7. Generation of Employment8. Development of Social Services
Life ExpectancyDeath RateEducationHealth
9. Self-Reliance10. Structural and Institutional Changes
o Failures:
The major failures of economic planning are as follows:1. No Substantial Increase in
the Standard of Living2. Increase in Unemployment3. Inequality in Distribution of
Income and Wealth4. More Ambitious5. Paradox of Saving and
Investment6. Predominance of Welfare
Considerations7. Less Growth in Productive
Sector
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TWELFTH FIVE YEAR PLAN
•The government on 4th October approved the
12th five year plan (2012-17) that set average
growth target at 8.2 percent.
•The theme of the Approach Paper is
“Faster, Sustainable and more inclusive
growth” .
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OBJECTIVESBasic objective : Faster, More Inclusive, and
Sustainable Growth.
Could aim at 9.0 to 9.5 percent
For growth to be more inclusive we need: Better
performance in agriculture
Faster creation of jobs, especially in
manufacturing
Stronger efforts at health, education and
Infrastructure.
Special plans for disadvantaged/backward
regions
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STRATEGIC CHALLENGESBased on an intensive process within the
Commission, following "Twelve Strategy
Challenges" have been identified
1. Enhancing the Capacity for Growth
2. Enhancing Skills and Faster Generation of
Employment
3. Managing the Environment
4. Markets for Efficiency and Inclusion
5. Decentralization, Empowerment and
Information
6. Technology and Innovation
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STRATEGIC CHALLENGES (Cont…)
7. Securing the Energy Future for India
8. Accelerated Development of Transport
Infrastructure
9. Rural Transformation and Sustained Growth
of Agriculture
10. Managing Urbanization
11. Improved Access to Quality Education
12. Better Preventive and Curative Health Care
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Target at least 4% growth for agriculture.
Cereals are on target for 1.5 to 2% growth.
Land and water are the critical constraints.
Technology must focus on land productivity and
water use efficiency.
Farmers need better functioning markets for both
outputs and inputs. Also, better rural
infrastructure, including storage and food
processing
States must act to modify APMC Act/Rules,
modernize land records and enable properly
recorded land lease markets.
AGRICULTURE
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• Investment and capacity additions are critical for
sustained industrial growth.
• Need to grow at 11-12% per year to create 2 million
additional jobs per year. Growth in 11th Plan is in 8%.
• Indian industry must develop greater domestic value
addition.
• Tune-up FDI and trade policies to attract quality
investment in critical areas.
• Improve business regulatory framework: ‘cost of doing
business’, transparency, incentives for R&D, innovation
etc.
• Better consultation and co-ordination in industrial policy
making
Industry
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• Some sectors should be given special attention because they
contribute most to our objectives
e.g. Create large employment: textiles and garments, leather
and footwear; gems and jewellery; food processing industries
• Deepen technological capabilities:
• Machine tools; IT hardware and electronics
• Provide strategic security:
• telecom equipment; aerospace; shipping; defence
equipment
• Capital equipment for infrastructure growth:
• Heavy electrical equipment; Heavy transport and earth-
moving equipment
• Sectoral plans are being prepared for each of the above with
involvement of industry associations and the concerned
Ministries
Industry
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Must aim at universalisation of secondary education by
2017
Must aim at raising the Gross Enrolment Ratio (GER) in
Higher Education to 20 percent by 2017 and 25 percent
by 2022
Must focus on quality of education. Must invest in faculty
development and teachers’ training
Must aim at significant reduction in social, gender and
regional gaps in education. Targets to be set for this
purpose
Research and innovation in higher education must be
encouraged with cross-linkages between institutions and
industry
Education and Skill
Development
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• Better health is not only about curative care, but about
better prevention, Clean drinking water, sanitation and
better nutrition, childcare, etc. Convergence of schemes
across Ministries is needed.
• Expenditure on health by Centre and States to increase
from 1.3% of GDP to at least 2.0%, and perhaps 2.5% of
GDP by end of 12th Plan
• Desperate shortage of medical personnel. Need targeted
approach to increase seats in medical colleges, nursing
colleges and other licensed health professionals
• Health insurance cover should be expanded to all
disadvantaged groups
• Focus on women and children; ICDS needs to be
revamped
Health
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• Commercial energy demand will increase at 7%
p.a. if GDP grows at 9%. This will require a
major supply side response and also demand
management
• Energy pricing is a major issue. Petroleum and
Coal prices are significantly below world prices
and world prices are unlikely to soften.
Energy
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• We must set a target of 100,000 MW capacity in 12th
Plan (against achievement of 50,000 MW in Eleventh
Plan)
• Coal availability will be a major constraint
• Hydro-power development seriously hindered by
forest and environment clearance procedures.
Himalayan States complain strongly.
• Electricity tariffs not being revised to reflect rising
costs. Regulators are being held back from allowing
justified tariff increases.
1. Power Sector Issues
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• Nuclear power programme must continue with
necessary safety review.
• Solar Mission is seriously underfunded.
• Need longer term energy solution for cooking in
rural areas. Expand LPG network (with cash
subsidy for the deserving, not subsidized
prices). Also use off grid solar and bio-mass
energy
• Wind power development, including off shore
wind power, needs to be encouraged
2. Other Energy Sources
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• India’s urban population is expected to increase from 400
million in 2011 to about 600 million or more by 2030
• Critical challenges are basic urban services especially for
the poor: water, sewerage, sanitation, solid waste
management, affordable housing, public transport
• Investment required in urban infrastructure is estimated at
`60 lakh crore over the next 20 years
• We need to develop and propagate innovative ways of
municipal financing, through Public-Private Partnerships
(PPPs)
• Land management strategies key for good urban
development as well as financing urban infrastructure
development
URBAN DEVELOPMENT
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• Railways’ Western and Eastern Dedicated Freight
Corridors must be completed by the end of the Twelfth
Plan
• High Speed Rail link between Delhi-Mumbai and
Delhi-Kolkata in the Twelfth Five Year Plan
• Complete the linkages between the ports and the
existing road and rail network. Need to deepen
existing ports. Increase bulk/container capacity
• Ensure sufficient provision for maintenance of the
already-built roads
• Invest in unified tolling and better safety on highways
• Improve bus services/public transport in smaller cities,
towns and districts.
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• Health and Education received less than projected in
Eleventh Plan. Allocations for these sectors have
increased in 12th Plan
• Health, Education and Skill Development together in the
Centre’s Plan have increased by 1.2 percent point of GDP
• Infrastructure, including irrigation and watershed
management and urban infrastructure, will need additional
0.7 percentage point of GDP over the next 4 years
• Use of PPP must be encouraged, including in the social
sector, i.e. health and education. Efforts on this front need
to be intensified
Resource Allocation Priorities in 12th Plan