Plateauing of the performance of the primary sector. Low growth –0.86% in later years 1998-2001, in the recent past, is a cause for serious worry.
This is attributed to technology stagnation, inadequate diversification, adverse impact on production and productivity due to recurrent drought, lack of new irrigation.
Manufacturing sector not doing well. Liberalization meant downsizing, correction and new jobs in new activities. Where are the new jobs?
Absence of adequate employment opportunities amongst the educated sections of the population. Employment Exchange statistics reveal that an estimated 5 million educated youth are on roll seeking employment.
Continuing poverty and high vulnerability.
Public sector downsizing adding to woes!
Stagnation in the other vital indices pertaining to human development. CBR has stopped falling. IMR is not falling rapidly enough.
Concerns over the state of public finances.
DEVELOPMENT TARGETS – TENTH PLAN PERIOD 2002-2007
The ways & means control and overdraft regulations of the Reserve Bank will not permit any substantial carryover.
Carrying over bills is counter productive – within a short period can lead to a fiscal breakdown.
Fiscal 2000-2001 end witnessed carryover of about Rs.700 crores. Fiscal 2001-2002 end involved carryover of about Rs. 1900 crores. This included about Rs. 800 crores of local body grants. The payment of this has been dropped as a one time aberration caused by State’s fiscal problems.
Good news: Fiscal 2002-2003 end involves virtually no carryover. All bills as at end of March 2003 have been settled.
Data on bills carried over is monitored closely.
Better still is to see whether there are any Treasury controls over and above normal controls.
Bills carried over is not a substantive monitorable indicator.