Prime Minister Manmohan Singh has asked the Planning Commission to revise its 12th plan document after several ministries opposed the allocation and also described the targets as highly "optimistic" and "unrealistic."
The 12th plan (2012-17) document presents a set of monitorable targets for each sector and allocations to 68 central ministries and departments and the state governments. It is rare that the draft brought before the full Planning Commission is revised as the plan document is finalized in consultation with the ministries concerned.
Although most of these targets such as economic growth target of 8.2% in the 12th plan are aspirational, several ministers felt achieving them will not be easy. "Tax to the gross domestic product (GDP) is highly optimistic," finance minister P Chidambaram said at the meeting. Targets for power generation (88,000 MW), foreign investment (one trillion US dollars) and fiscal consolidation were said to be difficult to achieve.
Chidambaram was also apprehensive about the realisation of gross budgetary support of Rs. 35.68 lakh in the 12th plan saying higher internal and external budgetary resources will be required to meet the shortfall. If the realization is less, it would mean lower allocation for health and education, the two priority areas of the 12th plan.
The allocation on high projects were termed as inadequate by the ministers.
Health minister Gulam Nabi Azad, who is getting the highest 12th plan allocation, described the funding as inadequate and said it would be difficult to achieve the targets listed with it. He also, expressed his displeasure on the plan panel insisting on National Health Mission despite his ministry having reservations over its implementation mode.
Home minister Sushil Kumar Shinde was unhappy with Rs. 52,000 crore provided to his ministry saying modern law and order enforcement mechanism will require much more money.
Others ministries such as road transport, agriculture, information and technology and youth affairs and sports have expressed their displeasure over the 12th plan allocations.
Deputy chairperson Montek Singh Ahluwalia replied that he had allocated funds as per his kitty. "This is what we have," he said.
The PM reportedly told Ahluwalia to revise the plan document to reflect the concerns raised by the ministers and present the revised version for the Cabinet's approval within a week.