Following is the text of intervention of Finance Minister Shri P. Chidambaram at the National Development Council meeting held:
“While the National Development Council has met a few times since the UPA Government assumed office in May 2004, I believe this is the most important meeting.
We are gathered here to consider and approve the draft of the Eleventh Five Year Plan for the period 2007-2012 – a period during which we hope we can consolidate the gains made in the last four years and place India, irreversibly, on the path of faster and more inclusive growth.
Let me compliment the States on their achievement in fiscal consolidation. 26 States have so far enacted the Fiscal Responsibility Legislation.
Consolidated gross fiscal deficit of the States is budgeted to be 2.4 per cent of GDP in 2007-08, which is below the desired level of 3 per cent of GDP.
Notwithstanding the variations across the States, the consolidated revenue balances is budgeted to show a surplus of 0.4 per cent of GDP in 2007-08.
Achievement of the targets set under the fiscal responsibility legislations has not only consolidated the fiscal health of the States, it has also improved the credibility of their budgetary operations.
I would, however, like to caution that the States should not become complacent. They must continue to make efforts to mobilise resources and improve the efficiency of their expenditure.
The Gross Budgetary Support (GBS) of the Central Government for the Eleventh Plan is estimated at Rs 14,21,711 crore (at 2006-07 prices).
This is an unprecedented increase of 114.8 per cent over the GBS for the Tenth Plan. Nearly one-half of this budgetary support is earmarked for the priority sectors of education, health, rural development, agriculture and irrigation – priorities which, I believe, are shared by State Governments and to which State Governments also ought to make substantial allocations in their State plans.
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Press Information Bureau Government of India
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