Karnataka’s 11 th Five Year plan

1. Karnataka’s 11th Five Year plan Some Aspects and Issues R. Sridharan, Jt Secretary (State Plans), Planning Commission

2. Approach paper • GDP growth targets need to be supplemented by monitorable targets for other dimensions of performance • Agriculture should grow at least at 4 %; 70 million non-agri jobs to be created • Investment rate should go up to 35.1% from 27.8%; Half of this increase has to come from public investment • MSMEs to be encouraged • Marginalised groups to be given special attention • Increase of 2.5 % in GBS required: Health 1 %; Irrigation and Rainfed Areas 0.5 %; Education 0.75 %; NREGA 0.75 %; Infrastructure x %; offset by some weeding out and reprioritisation R. Sridharan, Jt Secretary (State Plans), Planning Commission

3. Public Investment • States GBS to Plan to grow from 4.62% (06-07) of GDP to 7.26% (11-12); average 5.86%; but does not factor in pay revision • PPP in infrastructure needed to bridge resource gap; should achieve additional supply at reasonable cost; pvt resources should go into public projects R. Sridharan, Jt Secretary (State Plans), Planning Commission

4. Karnataka Monitorable Targets R. Sridharan, Jt Secretary (State Plans), Planning Commission

5. Karnataka Monitorable Targets R. Sridharan, Jt Secretary (State Plans), Planning Commission

6. Karnataka Poverty Ratios URP*Uniform (30 day)Recall period for all consumption items **MRP:365 day for 5 infrequently purchased non-food items and 30 days for others R. Sridharan, Jt Secretary (State Plans), Planning Commission

7. R. Sridharan, Jt Secretary (State Plans), Planning Commission

8. R. Sridharan, Jt Secretary (State Plans), Planning Commission

9. R. Sridharan, Jt Secretary (State Plans), Planning Commission

10. R. Sridharan, Jt Secretary (State Plans), Planning Commission

11. R. Sridharan, Jt Secretary (State Plans), Planning Commission

12. R. Sridharan, Jt Secretary (State Plans), Planning Commission

13. R. Sridharan, Jt Secretary (State Plans), Planning Commission

14. Social Sector Expenditures • SAR declined from 41% to 34% over 90-91 to 2002-03 in spite of pay revision • SPR declined by 5% over the same period • Desirable HER of 5% vs actual of 3.28% in 2002-03; but better than Kerala and TN; highest growth rate among states in per capita • HDR estimates reqmt at extra 2.5% of GSDP for meeting 10th Plan targets; of which 0.5% may come from GoI R. Sridharan, Jt Secretary (State Plans), Planning Commission

15. Stock Taking • New plan formulation is the occasion to subject schemes to evaluation and ZBB • GoI has reduced CSSs from 155 to 82 and several Central Sector Schemes and is continuing the process • MTFP is virtually a rolling FYP, both for plan and non-plan expenditures R. Sridharan, Jt Secretary (State Plans), Planning Commission

16. Regional Imbalances • Rs 307.16 crores additional allocation for 114 talukas based on CCDI • Use of Inverse of CCDI without weighting by population could lead to anomalous results • Plan and Non-Plan allocations should be taken together, especially in social sectors • Sectoral components of the CCDI could be linked to sectoral allocations R. Sridharan, Jt Secretary (State Plans), Planning Commission

17. R. Sridharan, Jt Secretary (State Plans), Planning Commission

18. The Way Forward - KHDR • 1999 HDR – state at median level; recommended increased outlays and better targeting, spatially and towards poor and marginalised groups • 2005 HDR: Healthcare spending to go up to 3 % of GSDP; education to 6 %; better targeting • “Conspicuously successful” programmes are housing, drinking water, electrification of SC/ST houses; but healthcare and education not so R. Sridharan, Jt Secretary (State Plans), Planning Commission

19. The Way Forward - KHDR • Participatory decision making in gram sabhas has not led to priority to HD agenda • GPs should monitor a set of HD indicators periodically • HD indicators should be used in resource allocations R. Sridharan, Jt Secretary (State Plans), Planning Commission

20. Central Assistance – Likely Trends • FRBM Act will be the binding constraint • GoI’s RD to be reduced to Zero in 2008-09 from 1.5 % in 2007-08 BE; since all CA is now only grants, this target directly impacts CA • NCA likely to grow more slowly than CA for Flagship schemes, Bharat Nirman etc ? • 07-08 NCA is 10 % over 06-07; Rs 16408.02 crs vs total of Rs 50160 crs (excldg CSS) • Share in Central Taxes increasing faster than NCA (25.63% BE 07-08 over BE 06-07 vs 10 %) R. Sridharan, Jt Secretary (State Plans), Planning Commission

21. PPP and Viability Gap Funding • IIFCL set up to provide long term debt finance, either directly or by refinance • Will cover up to 20 % of project cost • Priority for PPP projects awarded to pvt cos through competitive bidding; public sector cos also covered • PPP project – one based on a contract/concession agreement between Govt or stat entity on one side and a pvt co on the other for delivering an infrastructure service on payment of user charges • IIFCL will finance only commercially viable projects (Incldg those that attain viability after VGF) • 46 (2) projects, cost Rs. 60373.50 (4785.07) crores, IIFCL funding Rs. 6541.92 (568) crores sanctioned so far • For VGF, govt should certify that viability cannot be improved by higher tariff, longer concession period, lower capital cost etc. VGF is the bidding criterion R. Sridharan, Jt Secretary (State Plans), Planning Commission