Dr Bimal Jalan, member-secretary of the Planning Commission, tells Outlook
But what about resources? Can we raise our savings rate further?
Public savings is critical, but low. But you cannot regard our domestic savings rate as very high. The target is 26-26.5 per cent, which is well within the ballpark figure. The experience worldwide is that increase in incomes has a positive impact on savings. At a 2.4 per cent current account deficit level, there's a great scope for foreign direct/NRI investment. Also, industry has to use resources more productively. Take the project completion rate—a project which was to be completed in five years, may take up to 15 years. The productivity of capital is low, that has to be increased.
What are the Plan's thrust areas?
Infrastructure, poverty, employment, agriculture.... In agriculture, the primary problem is irrigation, which must get top priority now. Then, we have to get people out of agriculture, for which we have to raise industrial growth. Say, we have an agricultural growth of 4-4.5 per cent, and a population growth of 2 per cent, then if we can shift the entire incremental population to industry, that 4 per cent can straight add to income growth.
You have said that planning should be more 'delivery-oriented'.
Projects where only 5 per cent investment has been made over the past five-six years, will be dropped outright. Importance will be given to those nearing completion. The Accelerated Irrigation Development Programme announced in the Budget is high-priority. In basic minimum needs, we've decided to provide the administration with 'best-practice examples', which are working very well with support from ground-level NGOs.
How do you solve the states' resource problem?
Today, if a state is backward, it's blamed on the Centre or lack of resource transfer. Supposing we were to reverse the process and give the money to the states and just give them a target and tell them to do it their way. The Planning Commission cannot go on distributing shares. In our polity there's no way the Central Government can continue to be in command. The action has to come from the ground level.