Growth, Development and Planning

Development

  1. The State released its first Human Development Report in the year 2002 focusing on the sustainable livelihoods and this Update report is an attempt to capture latest developments on important HD indicators viz., livelihoods, health, education, gender development and briefly discusses the status of Rajasthan in context of Millennium Development Goals. 
  2. The report has been prepared in guidance of State Level Advisory Committee, Steering Committee, Planning Commission and UNDP. 
  3. Institute of Development Studies, Jaipur has played the vital role in research and analysis of data to see trends and developments documented in the report. Directorate of Economics & Statistics, Rajasthan has provided the statistical information and support through its HDR&C unit. 
  4. Rajasthan has traditionally been classified as a state ranking low on human development. 
    1. For the three decades of development up to the early 1980s, the state exhibited slow progress on almost all economic and social and health indicators. 
    2. In the 1980s, like most other southern and north-western states Rajasthan too began to display improvement in its economic and social performance. 
    3. Economic growth rates rose, poverty proportions noticeably reduced, literacy rates visibly improved, and there was an all-round improvement in the infrastructure. 
    4. Additionally, there has been a regional dimension to this development pattern: some northern and a few eastern districts and most urban areas have exhibited dynamism but the southern districts, particularly, have lagged behind. 
    5. Next, sharp differences in social attainment exist between the far western districts (e.g. low literacy rates and extremely adverse sex ratios in Jaisalmer, Barmer) and some eastern ones (e.g. low female literacy and high infant mortality in Bharatpur, Dholpur) on the one hand, and the rest of the districts, on the other.
  1. Human Development Index 
    1. While human development is a broad-based concept of development, which would include variables like economic growth, social development, democracy and freedom, for simplicity, the concept is operationalised through an index composed of three to four variables.
    2. For computational purposes the index is composed of only three broad variables (with some variants): 
      1. Income
      2. Education and
      3. Health status. 

Planning

  1. Aim of Economic Plain: 
    1. Accelerate economic growth
    2. Self-reliance
    3. Rise in average living standards of people
    4. Balanced regional development
    5. Reduction in economic inequalities & unemployment
  2. Since independence, many efforts have been made by the state to fulfill the aspiration of people and to achieve the objective. 
    1. State plan objectives have been synchronized with the objectives of the national five year plans.

Process of Planning in Rajasthan

1st FYP(1951-56)

  1. Main Focus area:
    1. Agricultural production
    2. Extension of irrigation facilities
    3. Development of power resources and
    4. Enhancement of basic social services e.g. education, medical facilities and drinking water.
  2. The Approved outlay was Rs. 64.50 crore in 1st 5YP, against which an expenditure of Rs. 54.15 crore was incurred. 

2nd FYP(1956-61)

  1. Main Focus area:
    1. Agriculture
    2. Irrigation
    3. Power and 
    4. Social services
  2. The Approved outlay was 105.27 crore in 2nd 5YP, against which an expenditure of Rs. 102.74 core
  3. Highest priority was accorded to 
    1. Irrigation & Flood Control (27.12%)
    2. Social & Community Services (24.38%)
    3. Power (14.75%) and 
    4. Rural Development (12.19%). 
  4. Rajasthan became a pioneering state in introducing the 3-tier Panchayati Raj System from 2nd October 1959. 
  5. Land reforms were initiated in this plan and steps taken for the abolishing of Zamindari, Jagirdari and Biswedari systems of land occupancies. 

3rd FYP(1961-66)

  1. Main Focus/priority:
    1. Infrastructural facilities including Irrigation and Power sector but development of Industries and Mines sector were also considered.
  2. An outlay of Rs. 236.00 crore was approved against which an expenditure of Rs. 212.70 crore was incurred. 
  3. Highest priority was accorded to
    1. Irrigation & Flood Control (41.32%)
    2. Social & Community Services (20.15%) and 
    3. Power (18.50%). 
  4. This Plan had witnessed average annual growth rate of 1.86% in Net State Domestic Product (NSDP) at constant (2004-05) prices but Per-Capita Income decreased by 0.50%. 
  5. Agriculture sector grew at 1.51%, Industry at 3.39% and Services sector at 2.16%. 
  6. To increase crop production, Intensive Agricultural District Program and Intensive Agricultural Area Program were initiated. But production of food grains came down due to famines and droughts.

3Year Annual Plans(1966-69)

  1. The Fourth Five Year Plan had not been implemented in 1966 due to the war of 1965. 
  2. Consecutive 3 years were taken under Annual Plans (1966-69). 
  3. During these 3 Annual Plans (1966-69)
    1. The approved outlay was Rs. 132.60 crore. Against which an expenditure of Rs. 136.76 crore was incurred which was, first time, higher than the approved outlay in the planning era after independence. 
    2. Highest expenditure was made under 
      1. Power (34.24%) followed by Irrigation
      2. Flood Control (34.07%) and
      3. Social & Community Services (15.85%). 
    3. There was a shadow of droughts & famines in 2 years of these three Annual Plans. 
      1. Due to this economy had witnessed a dismal growth of 0.10% at constant (2004-05) prices and negative growth of 2.17% in Per-Capita Income. 
      2. Agriculture & Industry sectors declined with 1.60% & 0.56% growth rates respectively and services sectors showed improvement with 4.49% growth rate. 

4th FYP(1969-74)

  1. Ambitious programmes were launched for 
    1. Drought Prone Areas
    2. Command Area Development and 
    3. Dairy Development
  2. Rs. 308.79 crore were spent against an approved outlay of Rs. 306.21 crore. 
  3. Highest priority was again accorded to
    1. Irrigation & flood control (34.09%)
    2. Power (30.43%) and 
    3. Social & Community Services (23.34%)
  4. Economy grew at 7.71% at constant (2004-05) prices and Per-Capita Income rose by 4.34%. 
  5. This plan period had witnessed excellent crops which was reflected by the 12.35% growth rate of the Agriculture Sector. Industry & Services sectors also grew at 4.58 % and 3.58% respectively. 

5th FYP(1974-79)

  1. Economic empowerment of weaker sections along with decentralized planning was accorded a very high priority. 
  2. Minimum Needs Programme was introduced and emphasis was laid on employment generation and Industries & Mines. 
  3. Approved outlay for this plan was Rs. 847.16 crore, against which an expenditure of Rs. 857.62 crore was incurred. 
  4. Highest priority was given to
    1. Irrigation & Flood Control (31.62%)
    2. Power (29.03%) and 
    3. Social & Community Services (17.38%). 
    4. High priority was also accorded to Transport & Industries.
  5. Expenditure on Transport Sector was increased by more than 8 times and on Industries & Minerals by 4 times. 
  6. District Industries Centres (DICs) were set up during this period and by their active participation in industrial development of the State, production of khadi products & village industries had increased.
  7. Economy had witnessed 5.34% growth at constant (2004-05) prices and Per-Capita Income increased by 2.38%.
  8. Agriculture, Industry & Services Sector had shown growth rates of 4.76%, 5.93% & 6.32% respectively. 

Annual Plan(1979-80)

  1. Due to mid-term elections, the first year of the 6th FYP was converted into Annual Plan (1979-80). 
  2. An expenditure of Rs. 290.19 crore was incurred against an approved outlay of Rs. 275.00 crore. 
  3. Highest priority was shifted to:
    1. Power (34.46%)
    2. Irrigation & Flood Control (26.30%) and 
    3. Social & Community Services (13.69%). 
  4. This annual plan had witnessed negative growth of 14.21% at constant (2004-05) prices and Per-Capita Income dipped by 16.61%.
  5. Agriculture, Industry & Services Sector showed growth rates of -24.07%, -4.97% & -2.40% respectively.

6th FYP(1980-85)

  1. Main focus area:
    1. Poverty alleviation and 
    2. Employment generation. 
    3. In this series, the National Rural Employment Programme (NREP) and Integrated Rural Development Programme (IRDP) appeared as the vital ingredients of the plan. 
  2. The new Twenty Point Programme was introduced with the aim to accelerate the pace of development. 
  3. Rs. 2120.45 crore was spent against an approved outlay of Rs. 2025.00 crore. 
  4. Highest Priority was accorded to 
    1. Power (26.70%)
    2. Irrigation & Flood Control (25.80%)
    3. Social & Community Services (19.81%) and 
    4. Transport (11.50%) sectors. 
  5. Expenditure under Rural Development increased by more than 6 times compared to the last plan. 
  6. Maximum period of this plan was affected by droughts and famines.
  7. Despite that, the economy witnessed 6.20% growth at constant (2004-05) prices and Per-Capita Income increased by 3.26%. 
  8. Agriculture, Industry & Services Sector showed growth rates of 8.99%, 2.91% & 4.52% respectively. 

7th FYP(1985-90)

  1. Objectives:
    1. Maximization of production in key sectors of the economy with special emphasis on rural economy, progressive reduction in poverty and unemployment. 
    2. Further to these, emphasis was also given to reduce the gap in the average incomes of the state and the nation; to achieve growth rate of 8% in the State economy in contrast to 5% of the national level; to implement Desert Development Programme due to special geographical and physical conditions of the State and the 20 Point Programme and Minimum Needs Programme.
    3. An expenditure of Rs. 3106.18 crore was made against an approved outlay of Rs. 3000.00 crore. 
    4. Highest Priority was again accorded to 
      1. Power (29.68%)
      2. Social & Community Services (23.70%) and 
      3. Irrigation & Flood Control (22.23%).
    5. Despite the all five years of droughts and famines of this plan, the economy witnessed annual growth of 8.29% at constant (2004-05) prices and Per-Capita Income increased by 5.69%. 
    6. Agriculture, Industry & Services Sector showed growth rates of 9.74%, 7.84% & 11.36% respectively.

Annual Plans(1990-92)

  1. Eighth Five Year Plan could not be started due to international shocks on the national economy for 2 years. 1990-91 & 1991-92 were converted into Annual Plans. 
  2. Rs. 2159.98 crore was spent against an approved outlay of Rs. 2126.00 crore during Annual Plans (1990-92). 
  3. Highest priority was accorded to 
    1. Power (28.81%)
    2. Social & Community Services (23.18%) and 
    3. Irrigation & Flood Control (18.32%).
  4. An excellent economic growth rate of 11.16% at constant (2004-05) prices was noticed during this period and Per-Capita Income rose by 8.79%.
  5. Industry sector showed remarkable growth of 21.72%. Agriculture and Services sectors grew at 8.07% & 10.45% respectively. 

8th FYP(1992-997)

  1. Aimed:
    1. Faster growth
    2. Generation of more employment opportunities
    3. Reduction in poverty and regional disparities
    4. Provision of basic minimum facilities and enhancement in people’s participation
    5. Reduction in population growth rate
    6. Completion of ongoing projects within stipulated time and
    7. Diversification of agriculture to horticulture, livestock, fisheries, and agro processing, etc. 
  2. An expenditure of Rs. 11998.97 crore was incurred against an approved outlay of Rs. 11500.00 crore. 
  3. Highest priority was given to 
    1. Power (27.12%)
    2. Social & Community Services (25.80%) and 
    3. Irrigation & Flood Control (15.30%). 
  4. Rural Development & Agriculture were also priority areas with 16.53% share in expenditure. 
  5. The growth rate of the economy was 8.08% at constant (2004-05) prices and Per-Capita Income grew by 5.44%.
  6. Agriculture, Industry & Services Sector showed growth rates of 9.04%, 8.32% & 7.76% respectively. 

9th FYP(1997-2002)

  1. Priority:
    1. Generation of larger employment opportunities
    2. Reduction in poverty and regional disparities
    3. Provision of basic minimum service
    4. People’s participation and infrastructure development
    5. Accelerate the pace of development for improving the living conditions of the people and to reach the national averages in sectors in which the State was below the national average were also priority areas. 
  2. An expenditure of Rs. 19566.82 crore was made against an approved outlay of Rs. 27650.00 crore. 
  3. Highest priority was given to 
    1. Social & Community Services (32.70%)
    2. Power (26.87%)
    3. Irrigation & Flood Control (11.55%)
    4. Rural Development & Agriculture (13.99%)
  4. The growth rate of the economy was 4.59% at constant (2004-05) prices and Per-Capita Income grew by 1.95%. 
  5. Agriculture, Industry & Services Sector showed growth rates of 2.05%, 7.72% & 6.13% respectively. 

10th FYP(2002-07)

  1. The 10th FYP of the nation recognized that the development objectives need to be defined not only in terms of increase in GDP but also in terms of human well being. 
  2. The State’s approach and strategy for the 10th FYP aimed at achieving the national average levels in respect of all the critical indicators of quality of life. 
  3. Priority:
    1. Generation of employment opportunities
    2. Substantial reductions in poverty and regional disparities
    3. Provision for basic minimum services
    4. Ensuring greater people participation
    5. Focus on infrastructure development
  4. Taking into consideration the estimated resources, the Planning Commission approved the Tenth Plan outlay for Rajasthan for Rs. 31831.75 crore. Against this, an expenditure of Rs. 33951.21 crore was incurred.
  5.  Highest priority was given to
    1. Power (31.51%)
    2. Social & Community Services (29.94%)
    3. Irrigation & Flood Control (11.10%)
  6. The growth rate of the economy was 7.17% at constant (2004-05) prices and PerCapita Income grew by 5.19%.
  7. Agriculture, Industry & Services Sector showed growth rates of 6.25%, 13.74% & 7.13% respectively. 
  8. Rajasthan Fiscal Responsibility and Budget Management Act, was enacted in the year 2005-06. 
    1. The State Government not only achieved the targets laid down in the FRBM Act but also achieved additional improvements in the revenue deficit and fiscal deficit. 
    2. The Public Expenditure Review Committee was constituted under the provision of FRBM Act, to give recommendations for revenue augmentation and expenditure control after carrying out detailed review of the existing system. 

11th FYP(2007-12)

  1. The approach of the National Eleventh Plan was “Towards Faster and More Inclusive Growth” under which not only a growth target but also a number of quantifiable and monitorable Socio-Economic targets relating to employment generation, school drop-out rates, infants’ mortality, maternal mortality etc. were specified. 
  2. The broad approach and objectives of National Plan were as under:
    1. Average inclusive growth rate of 9% along with 4.1% growth rate in Agriculture, 10.5% growth rate in Industry and 9.9% growth rate in Service sector and to double per capita income by 2016-17.
    2. Providing essential public services such as education, health, maternal and child-care, clean drinking water and basic sanitation facilities to all especially in rural areas.
    3. Accelerated agricultural growth through strengthening extension and technology transfer, improved credit flows along with diversification into horticulture and floriculture.
    4. For faster growth of manufacturing, infrastructure consisting of roads, railways, ports, airports, communication and electric power is to be substantially rectified through public private participation.
    5. For promoting industrial growth, creation of an investment friendly climate in the states along with encouragement to FDI, focused infrastructure development for Special Economic Zones (SEZs) and Special Economic Regions (SERs) and greater flexibility in labour laws.
    6. Under Bharat Nirman, a time bound programme (2005-09) for bridging infrastructure gaps in the area of irrigation, rural roads, rural housing, rural water supply, rural electrification and rural telecommunication connectivity are to be addressed.
    7. Bridging divides for SCs, STs and others left behind.
    8. Gender balancing for minimizing gaps in all social indicators by focusing on three areas namely violence against women, economic empowerment and women health.
    9. Decentralized planning through greater involvement of PRIs. 
  3. Looking at the diverse geography, social structure and developmental needs of the people, a vision focused on following six priorities was identified by the State Government. These priorities were the guiding factor during the Eleventh Plan period: 
    1. Eliminating hunger, malnutrition, starvation below subsistence level of living and abject poverty.
    2. Taking special care of disadvantaged, particularly women.
    3. Emphasizing HRD, social infrastructure, creating capabilities, filling up social infra gaps.
    4. Providing gainful employment, creation of livelihoods and conservation of natural and cultural heritage.
    5. Ensuring good governance & fiscal reforms.
    6. Creation of economic infrastructure.
  4. The growth rate in the 11th FYP has been estimated at 6.5%. During 2010-11 the growth rate was 11.2% which was the highest during the 11th FYP.

12th FYP(20012-17)

  1. The theme of 12th FYP was “Faster, Sustainable and More Inclusive Growth”.
  2. An outlay of Rs. 1,96,992 has been proposed for 12th FYP.
  3. Economic growth rate:

Planning Department(Rajasthan)

  1. Planning Department prepares Schematic Budget, Monitors Expenditure, Budget Announcement & Centrally Sponsored Schemes for achieving targeted growth in State. 
  2. The department oversees the implementation of the government policy on development into a proper implementation framework and ensures its execution. 
  3. Promoting PPP initiatives in infrastructure and social sectors and streamlining and modernizing statistical systems for ensuring reliable, timely and credible data. 
  4. The department also acts as a bridge between State and Central Ministries like MoSPI, Cabinet Secretariat & Institutions like NITI Aayog. 
  5. Planning Department is also cadre controlling department of Economics & Statistical Services and Evaluation Service.
  6. Department plays Coordinating roles for preparation of Perspective Plan/ Vision Document & Roadmaps. 
  7. The Planning Department provides secretarial support to RajCMETAC. 
  8. The Project Monitoring Unit of the department coordinates with the state departments, Ministry of Finance & other Agencies for Externally Aided Projects.
  9. Department also perform as a bridge between State Government and Banks.

Planning Commission –>Niti Aayog

  1. NITI Aayog, the National Institution for Transforming India is a Government of India policy, established to replace the Planning Commission.
  2. The aim of NITI Aayog is to encourage involvement and participation in the economic policy-making process, with emphasis towards making the country a cooperative federalism.
  3. NITI Aayog is developing itself as a State-of-the-art Resource Centre, with the necessary resources, knowledge and skills, that will enable it to act with speed, promote research and innovation, provide strategic policy vision for the government, and deal with contingent issues.
    1. NITI Aayog’s entire gamut of activities can be divided into four main heads:
      1. Design Policy & Programme Framework
      2. Foster Cooperative Federalism
      3. Monitoring & Evaluation
      4. Think Tank and Knowledge & Innovation Hub
  4. Aayog launched a 3 year action plan from April, 2017. Niti Ayog has also been entrusted the work on the 7 year strategy, and on 15 year Vision Document. Which guide the government development works till 2030.