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PYQ 1200 Q/A Part - 1
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Kerala PSC India Year Book Study Materials Page 403
Book's First Pagein a 21.52 per cent increase in nominal terms. During this Plan period, the Gross Domestic Product (GDP) grew at an average rate of 5.8 per cent exceeding the targeted growth rate by 0.8 per cent. Eighth Annual Plans The Eighth Five-Year Plan (1990-95) could not take off due to the fast changing political situation at the Centre. The Eighth five-Year Plan commenced in 1992 and that 1990-91 and 1991-92 were treated as separate Annual Plans. Formulated within the framework of the Approach to the Eighth Five-Year Plan (1990-95), the basic thrust of these Annual Plans was on maximization of employment and social transformation. Eighth Plan The Eighth Five-Year Plan (1992-97) was launched immediately after the initiation of structural adjustment policies and macro stabilization policies, which were necessitated by the worsening Balance of Payments positions and the position of inflation during 1990-91. The various structural adjustment policies were introduced gradually so that the economy could be pushed to a higher growth path and improve its strength and thus prevent a crisis in Balance of Payments and inflation in the future. The Eighth Plan took note of some of these policy changes, which were to come about due to these reforms. The Plan aimed at an average annual growth rate of 5.6 per cent and an average industrial growth rate of about 7.5 per cent. These growth targets were planned to be achieved with relative price stability and substantial improvement in the country’s Balance of Payments. Some of the salient features of economic performance during the Eighth Five-Year Plan indicate, among other things: (a) a faster economic growth, (b) a faster growth of the manufacturing sector and agriculture and allied sectors, (c) significant growth rates in exports and imports, improvement in trade and current account deficit and a significant reduction in the Central Government’s fiscal deficit. However, a shortfall in expenditure in the Central sector due to inadequate mobilization of internal and extra budgetary resources by the PSUs and various departments was witnessed. In the States sector, there as on for the shortfall was lack of mobilization of adequate resources due to deterioration in the balance of current revenues, erosion in the contribution of state electricity boards and state road transport corporations, negative opening balance, mounting non-Plan expenditure and shortfalls in the collection of small savings, etc. The total expenditure during the entire Eighth Plan stood at ₹ 4,95,669 crore by taking 1996-97 (RE) as actual] at current prices as against envisaged total public sector outlay of ₹ 4,34,100 crore (1991-92 prices) resulting in a 14.2 per cent increase in nominal terms. The Eighth Plan envisaged an annual average growth rate of 5.6 per cent. Against this, an average annual growth rate of 6.8 per cent was achieved during this plan period. Ninth Plan The Ninth Plan (1997-2002) was launched in the fiftieth year of India’s Independence. The Plan aimed at achieving a targeted GDP growth rate of seven per cent per annum and there was emphasis on the seven identified Basic Minimum Services (BMS) with additional Central Assistance earmarked for these services with a view to obtaining a complete coverage of the population in a time-bound manner. These included provision of safe drinking water, availability of primary health service facilities, universalization of primary education, public housing assistance to shelter less poor families, nutritional support to children, connectivity of all villages