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| Kathmandu, Wednesday December 18, 2002 Paush 03, 2059. |
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Two growth rates set for Tenth
Plan
Post Report
KATHMANDU, Dec 17 With an objective of making
the Tenth Plan targets more realistic and attainable, particularly in the wake of unending
cycle of violence, a meeting of the National Planning Commission (NPC) has set two
different economic growth rate targets, which is first of its kind in over four-decade
long history.
The meeting chaired by the Prime Minister
Lokendra Bahadur Chand, also principally approved the Tenth Plan document and decided to
submit it to the cabinet meeting for the final approval.
As per the modified plan targets, the original
economic growth rate of 6.2 per cent, defined as optimistic or normal growth rate, would
be achieved only if the fragile security condition returns to normalcy and the economy
revives. The normal growth rate has been targeted to be achieved by the growths of 4.1 in
agriculture and 7.5 per cent in non-agriculture sectors.
However, if the situation remains unchanged or
further deteriorates, then the Tenth Plan expects low-case growth scenario, which has been
put at 4.3 per cent. The targeted low scenario growth rates for the agriculture and
non-agriculture sectors have been put at 2.8 and 5.2 per cent respectively.
According to information given at a press
conference, the Tenth Plan, which has set poverty alleviation as the sole objective and
has vowed to bring down the existing poverty rate to 30 per cent, has aimed at investing
Rs 490 billion to Rs 640 billion. Of the total targeted expenditures of the plan period,
government expenditures would be around Rs 205 to Rs 234 billion, while the rest amount is
targeted to be met from the private investments.
Similarly, with the annual average growth rate
of 7 to 11 per cent, the government has targeted to mobilise foreign assistance to finance
57 to 58 per cent of the total government investments. The plan has also aimed to achieve
10 to 15 per cent of annual growth rate in the development expenditure.
Answering quarries, Dr Shankar Sharma, Vice
Chairman of the NPC said that the government has made changes in the target of the
economic growth rate due to the ongoing violence and its visible impacts on the economy
and investments. "We have seen a lot of changes after National Development Committee
approved the Tenth Plan’s concept paper about a year ago and the growth rate has been
made flexible to make it more realistic by addressing the existing economic
slowdown," Dr Sharma said.
He further said that with a view to making the
Tenth Plan document more concrete and result-oriented, the NPC has incorporated other
complimentary documents as Medium Term Expenditure Framework (MTEF), Poverty Reduction
Strategy Paper (PRSP), Immediate Action Plan (IAP) and Performance Indicators (PIs).
He also said that high, sustainable and
board-based economic growth, development of social sector and rural infrastructures,
targeted programmes, and good-governance are the main four strategies of the Tenth Plan.
Sharma also said that the plan document has been
slightly modified by adding a separate chapter on Conflict and Development to make the
plan programmes largely focused on the grave problem of poverty and unemployment, and to
address the root cause of the violence.
He also informed that the existing fixed block
grants policy to the Village Development Committees (VDCs) would be changed and, as per
the new policies adopted in the plan, such block grants would vary depending upon the
incidence of poverty of the particular VDC. Referring to the impressive implementation of
the IAP, he said that such IAP covering the entire fiscal year would be introduced and the
plan has adopted an effective expenditure tracking mechanism to improve the quality of
expenditure.
Dr Sharma also stressed that the plan has
adopted specially designed strategies to expedite decentralisation, effective
implementation of anti-poverty programmes and strengthen evaluation and monitoring of the
plan programmes.
Dr Yuba Raj Khatiwada, member of the NPC, said
that unlike the past periodic plan, the Tenth Plan has adopted a policy of intervention,
particularly on the pro-poverty programmes to ensure its effective and result-oriented
implementation.
He also said that MTEF, which for the first time
prioritises the development programmes to ensure maximum utilisation of scare-resources,
would play a crucial role in accelerating the existing fight against poverty. Stressing
upon the need of active participation of private sector to achieve the plan target, he
said that the plan has incorporated necessary strategies to crate a conducive environment
to the development of the private sector.
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