Drought May Force Plan Panel To Revise Growth Target

New Delhi, Aug 25: | Updated: Aug 26 2002, 05:30am hrs
The unforeseen drought situation in the country may prompt the Planning Commi-ssion to revise the ambitious Tenth Plan growth target of 8 per cent to a more manageable level when it meets to finalise the Plan in late October.

According to sources, the results of the effect of drought on various parts of the country would start pouring in next month following which the Commission would make an assessment of its impact on the economy as a whole.

When the full Planning Commission meets in October, it would take a final decision on whether the growth target is to be brought down or maintained at the original level.

The failure of the government to achieve the Ninth Plan target of 6.5 per cent (originally fixed at 7 per cent) by attaining a growth of just 5.35 per cent had put a question mark on the feasibility of a 8 per cent growth target for the current Plan.

The monsoon failure has made things worse forcing officials to contemplate a change in the target.

With the full Planning Commission meeting taking place in October, the meeting of the National Development Council (NDC) cannot take place before December. After the Planning Commission clears the Plan, it has to go to the Cabinet for clearance. Only when the Plan receives Cabinet clearance, will it be put before the NDC.