XI LOK SABHA DEBATES, Session IV (Budget)

XI LOK SABHA DEBATES, Session IV (Budget) 
XI LOK SABHA DEBATES, Session IV (Budget) Monday , May 12 , 1997 / Vaisakha 22 , 1919 (Saka)

Type of Debate: GOVERNMENT MOTION
Title: Regarding approach paper to the Ninth Five Year Plan. (Not Concluded) Motion Moved TEXT : 14.52 hrs.

MR. CHAIRMAN: The House will now take up Item No. 9 regarding Motion on Approach Paper to the Ninth Five Year Plan for which five hours have been recommended by the Government.

If the House agrees, we may tentatively allot five hours to this item.

SEVERAL HON.MEMBERS: Yes.

THE MINISTER OF STATE OF THE MINISTRY OF PLANNING AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE OF THE MINISTRY OF SCIENCE AND TECHNOLOGY (SHRI YOGINDER K. ALAGH): I beg to move:

"That this House do consider the Approach Paper to the Ninth Five Year Plan (1997-2002) laid on the Table of the House on the 26th February, 1997."

SHRI RAM NAIK (MUMBAI NORTH): Madam, it would be better if the hon. Minister makes some preliminary remarks so that the discussion can go in a particular direction.

SHRI YOGINDER K. ALAGH: If the Chair permits, I would be very happy to speak for it is my favourite subject. But since we have tabled the Approach Paper very well in advance, I thought that it is entirely more appropriate for me to respond later to the suggestions of the hon. Members.

MR. CHAIRMAN: It is entirely for you to respond now or later. If you wish you may respond now.

SHRI RAM NAIK: It is your privilege to say something, otherwise we are ready for the debate. Just as when a Bill is introduced by the hon. Minister, and if he wants to say something on that Bill, he may say so.

SHRI YOGINDER K. ALAGH: Madam Chairperson, I am very grateful to the House for giving the Planning Commission and the Planning Ministry this opportunity for a discussion on the Approach Paper of the Ninth Five Year Plan. The Approach Paper has been considered in detail by the National Development Council and I am very happy to report to the hon. Members that it has received support from the State Governments across a political spectrum of the country. The Approach Paper has also been discussed in the Rajya Sabha where again the objectives of planning, planning methods followed in this country, and the approach to the Ninth Five Year Plan had been generally very supportively commented upon.

Basically, the Approach Paper first tries to look at what has happened in the last five to eight years, what are the strengths and weaknesses of the economy, and then tries to develop a strategy for the next five years. It notes that there has been a higher rate of growth, and that the country is doing well as far as its balance of payments is concerned, But generally, on the price side, there has been a performance which is satisfactory although it is concerned about the price rise of foodgrains in the last year or so. But it also notes that there have been some underlying features which are of considerable concern. These are slowing down of agricultural growth potential.

These are an increase according to the National Sample Survey. Of the male workers, unemployment per per person per day is increasing.

¨ÉèÆ <ºÉ ¤ÉÉiÉ EòÉä ¤Éc÷ä ¨É½þi´É EòÒ ¨ÉÉxÉiÉÉ ½þÚÆ ºÉ¦ÉÉ{ÉÊiÉ VÉÒ, EªÉÉäÆÊEò MÉÉÆ´É ¨ÉäÆ VÉ¤É EòÉä<Ç MÉ®úÒ¤É +Énù¨ÉÒ ®úÉäVÉMÉÉ®ú Eòä Ê±ÉB VÉÉiÉÉ ½þè iÉÉä =ºÉEòÉä ½þ¨É =ºÉEòä ÊnùxÉ Eòä ºiÉ®ú {É®ú =ºÉEòÉ xÉÉ{É Eò®úiÉä ½þèÆ +Éè®ú +MÉ®ú ´É½þ ®úÉäVÉMÉÉ®ú Eòä Ê±ÉB VÉÉB +Éè®ú =ºÉEòÉä ®úÉäVÉMÉÉ®ú Ê{ÉUô±Éä EòÉ¨É EòÒ iÉÖ±ÉxÉÉ ¨ÉäÆ Eò¨É Ê¨É±Éä iÉÉä ´É½þ EòÉ¡òÒ MÉÆ¦ÉÒ®ú ¤ÉÉiÉ ½þè*

So, the Approach Paper comments on this. It is disturbed by the fact that in some of the large populous States of the country, income growth has been very low. In U.P., for example, the per capita income growth at constant prices has been constant. In Bihar, it has gone down. Taking these kinds of figures, it has spelt out a strategy in the Approach Paper. It tries to present a strategy for the next five years and it presents a kind of bifocal strategy walking as it were on two legs.

The first major emphasis that it gives is growth. The growth that we have achieved in the past has also to be accelerated in the future. The Approach Paper says, Yes, we are growing at around six to seven per cent and the average of around six per cent has already been within our reach in the recent past. In fact, there are some international commentators who are predicting. For example, the Link model of my teacher lawrance Klein, which is a global model has predicted that India's growth rate will be around 6.8 to seven per cent in the next five years. In fact, its predictions, in the past two or three years have been fairly true also.

The Approach Paper says, if we can particularly achieve the strategy of cutting down the deficit on the revenue account of the Government, that is one critical feature which we think as a problem, because if you are able to do that, if you are able to cut it down, let us say, by 0.8 or 1.0 per cent of GDP, then it is possible for you to raise your investment levels to 27 to 28 per cent. With some improvement in the capital productivity, we should be able to achieve seven per cent growth rate. So, one focus is, keeping up the process of reforms, keeping up the emphasis on structured subsidies but trying to cut down the waste whether it is in the Central Government or in the State Governments and achieve this objective of higher growth.

But the other objective that it says which is equally or more important is that you need special efforts for those areas where we have done very badly or we have not done well as we wanted to. Take for example, the basic minimum services, whether it is primary education, literacy, health for every child, woman and man in the country by extending the public health system to the village; providing rural connectivity, that is every village can be connected by road. In the areas of drinking water, food security system, public distribution system, rural housing, it says, the kind of method which is adopted in the basic minimum services plan, which is, you sit down with the States, develop the targets together. We had a meeting for two days of all the Chief Ministers of the country. I would say that the basic minimum services plan of the Approach Paper of the Ninth Plan owes a lot, for example, to the Chief Minister of Rajasthan, Shri Bhairon Singh Sekhawat. He contributed to it; or it owes to the Chief Minister of Bengal, Shri Jyoti Basu or the Chief Minister of Bihar, or the chief Minister of Orissa. I chaired a committee with these four Chief Ministers which decided that all these programmes that we have in this sector, we will put them together, we will add on the outlays to them by Rs. 2,400 crores last year, Rs.3,300 crores this year--which is 15 per cent increase in real terms. It is very easy to say, this is a small sum of money.

15.00 hrs.

But in a period of fiscal restructuring, to put in Rs.2,400 crore in an additional objective, to put in Rs.3,300 crore are the very major resources which we want to bring to bear on these terms. It is not just the resources, but the method.

iÉ®úÒEòÉ EªÉÉ ½þè? iÉ®úÒEòÉ ªÉ½þ ½þè ÊEò ®úÉVªÉ ºÉ®úEòÉ®úäÆ +Éè®ú ½þ¨É <Eò_ä ¤Éè`ö Eò®ú =ºÉ ªÉÉäVÉxÉÉ EòÉ ±ÉIÉªÉ ÊxÉvÉÉÇÊ®úiÉ Eò®úäÆMÉä* iÉ®úÒEòÉ ªÉ½þ ¦ÉÒ ½þè ÊEò JÉÉ±ÉÒ ½þ¨É +{ÉxÉä ±ÉIÉªÉ EòÒ ¤ÉÉiÉ xÉ½þÒÆ Eò®úäÆMÉä* <xÉ ¨ÉÖJªÉ¨ÉÆÊjÉªÉÉäÆ xÉä VÉÉä ÊEò ¤É½þÖiÉ ºÉÒÊxÉªÉ®ú ½þèÆ, ªÉ½þ ¦ÉÒ Eò½þÉ ÊEò ½þ¨É ¦ÉÒ +É{ÉEòä ºÉÉlÉ EòÆvÉä ºÉä EòÆvÉÉ Ê¨É±ÉÉBÆMÉä, ½þ¨É 20 {É®úºÉèÆ]õ ºÉÉvÉxÉ nùäÆMÉä* VÉÉä MÉ®úÒ¤É ®úÉVªÉ ½þèÆ VÉèºÉä Ê¤É½þÉ®ú Eòä ¨ÉÖJªÉ¨ÉÆjÉÒ xÉä Eò½þÉ ÊEò ½þ¨ÉÉ®úä {ÉÉºÉ <iÉxÉÉ vÉxÉ xÉ½þÒÆ ½þè* ¨ÉÖJªÉ¨ÉÆÊjÉªÉÉäÆ EòÒ Eò¨Éä]õÒ ÊVÉºÉ EòÉ ¨ÉèÆ SÉäªÉ®ú¨ÉèxÉ ½þÚÆ, =ºÉEòÉ ªÉ½þ ÊxÉ¶SÉªÉ lÉÉ ÊEò +É{É <ºÉ¨ÉäÆ +{ÉxÉÉ ¸É¨É nùäÆ* ¸É¨É iÉÉä ½þ¨ÉÉ®úä {ÉÉºÉ ½þè* ¨ÉèÆxÉä ºÉÖxÉÉ ½þè ÊEò EòÖUô ±ÉÉäMÉÉäÆ xÉä Eò½þÉ ÊEò ½þ¨É ªÉ½þ ±ÉIÉªÉ |ÉÉ{iÉ xÉ½þÒÆ Eò®ú ºÉEòäÆMÉä* ¨ÉèÆ ªÉ½þ MÉ±ÉiÉ ¤ÉÉiÉ ¨ÉÉxÉiÉÉ ½þÚÆ* ªÉÉäVÉxÉÉ ¨ÉäÆ ªÉ½þ ¦ÉÒ Eò½þÉ MÉªÉÉ ½þè ÊEò ½þ¨ÉxÉä ®úÉVªÉ ºÉ®úEòÉ®úÉäÆ EòÉä |ÉäÊ®úiÉ ÊEòªÉÉ* ´ÉèºÉä ½þÒ ªÉ½þ =¨¨ÉÒnù EòÒ VÉÉiÉÒ ½þè ÊEò ®úÉVªÉ ºÉ®úEòÉ®úäÆ IÉäjÉÒªÉ ºiÉ®ú {É®ú {ÉÆSÉÉªÉiÉÉäÆ +Éè®ú MÉÉÆ´ÉÉäÆ EòÒ Eò¨ªÉÖÊxÉ]õÒ EòÉä ´ÉèºÉÒ ½þÒ |Éä®úhÉÉ nùäÆMÉÒ ÊVÉºÉºÉä ÊEò ´Éä <xÉ ªÉÉäVÉxÉÉ+ÉäÆ ¨ÉäÆ ¦ÉÉMÉ ±Éä ºÉEòäÆ* +MÉ®ú Eò¨ªÉÖÊxÉ]õÒ <ºÉ¨ÉäÆ ¦ÉÉMÉ ±ÉäÆ +Éè®ú xÉB iÉ®úÒEòä +{ÉxÉÉB VÉÉBÆ iÉÉä ½þ¨É +{ÉxÉä ±ÉIÉªÉ EòÉä |ÉÉ{iÉ Eò®ú ºÉEòäÆMÉä* ¨ÉÖJªÉ¨ÉÆÊjÉªÉÉäÆ xÉä Eò½þÉ ÊEò ªÉä-ªÉä iÉEòxÉÒEòÒ iÉ®úÒEòä ½þèÆ +Éè®ú <ºÉºÉä BVÉÖEòä¶ÉxÉ, ½þè±lÉ <xÉ ºÉ¤É SÉÒVÉÉäÆ EòÒ ±ÉÉMÉiÉ Eò¨É +É ºÉEòiÉÒ ½þè* +MÉ®ú Eò¨ªÉÖÊxÉ]õÒ ¦ÉÒ <ºÉ¨ÉäÆ <xÉ´ÉÉ±´É ½þÉä iÉÉä ½þ¨É ªÉ½þ ¨ÉÉxÉiÉä ½þèÆ ÊEò ÊxÉªÉÉäVÉxÉ EòÉ VÉÉä xÉªÉÉ gøÉÆSÉÉ ½þè ÊVÉºÉ EòÉä ªÉÉäVÉxÉÉ +ÉªÉÉäMÉ EòÉä+É{É®úäÊ]õ´É ¡òèb÷®úÊ±ÉV¨É Eò½þiÉÒ ½þè, ´É½þ ªÉÉäVÉxÉÉ ½þ¨É Ênù±±ÉÒ ¨ÉäÆ xÉ½þÒÆ ¤ÉxÉÉBÆMÉä, ´É½þ ªÉÉäVÉxÉÉ Eòä´É±É BEò ¨ÉÆjÉÉ±ÉªÉ EòÒ xÉ½þÒÆ ½þÉäMÉÒ, ´É½þ ªÉÉäVÉxÉÉ ½þ¨É ®úÉVªÉ ºÉ®úEòÉ®úÉäÆ Eòä ºÉÉlÉ ¤Éè`ö Eò®ú ¤ÉxÉÉBÆMÉä* +MÉ®ú EòÉä<Ç Eò½þä ÊEò ªÉ½þ ¤É½þÖiÉ +ÉºÉÉxÉ ¤ÉÉiÉ ½þè iÉÉä ªÉ½þ +ÉºÉÉxÉ ¤ÉÉiÉ xÉ½þÒÆ ½þè* ½þ¨É BEò gøÉÆSÉÉ ¤ÉxÉÉxÉÉ SÉÉ½þiÉä ½þèÆ ÊVÉºÉºÉä ÊVÉ¨¨ÉänùÉ®úÒ Eòä ºÉÉlÉ <xÉ ºÉ¨ÉºªÉÉ+ÉäÆ Eòä ºÉ¨ÉÉvÉÉxÉ EòÒ ¤ÉÉiÉ ½þÉä ºÉEòä +Éè®ú ±ÉIÉªÉ ´É xÉÒÊiÉªÉÉÆ ¤ÉxÉÉªÉÒ VÉÉ ºÉEòäÆ* Eòäxpù ºÉ®úEòÉ®ú ªÉÉ ªÉÉäVÉxÉÉ +ÉªÉÉäMÉ EòÉä ={ÉªÉÖEiÉ ºÉÉvÉxÉ ÊnùB VÉÉBÆMÉä ±ÉäÊEòxÉ ®úÉVªÉ ºiÉ®ú {É®ú +Éè®ú ±ÉÉäEò±É Eò¨ªÉÖÊxÉ]õÒ Eòä ºiÉ®ú {É®ú ¦ÉÒ =xÉ ±ÉIÉªÉÉäÆ Eòä Ê±ÉB ºÉÉvÉxÉ ½þÉäÆ ÊVÉºÉºÉä ½þ¨É =xÉ ±ÉIÉªÉÉäÆ EòÉä |ÉÉ{iÉ Eò®ú ºÉEòäÆ*

BäºÉä ½þÒ ªÉÉäVÉxÉÉ ªÉ½þ ¦ÉÒ Eò½þiÉÒ ½þè ÊEò Ê{ÉUô±Éä EòÖUô ´É¹ÉÉäÇÆ ¨ÉäÆ EÞòÊ¹É Eòä IÉäjÉ ¨ÉäÆ ÊVÉiÉxÉÉ ´ªÉªÉ ½þÉäxÉÉ SÉÉÊ½þB, =iÉxÉÉ xÉ½þÒÆ ½þÖ+É*

The rate of agricultural capital formation has caused concern. Again, we have said that for this sector we will produce a detailed plan. A beginning has been made by the Accelerated Irrigation Benefit Programme.

What is the Accelerated Irrigation Benefit Programme? It is a programme which takes projects. It says:

+MÉ±Éä nùÉä ªÉÉ iÉÒxÉ ºÉÉ±É ¨ÉäÆ <ºÉ {É®ú VÉÉä {ÉèºÉä JÉSÉÇ ½þÉäÆMÉä, ´Éä iÉÉä `öÒEò ½þèÆ ±ÉäÊEòxÉ ÊEòºÉÉxÉ Eòä JÉäiÉÉäÆ ¨ÉäÆ b÷è¨É ªÉÉ EòäxÉÉ±É ºÉä {ÉÉxÉÒ {É½þÖÆSÉÉªÉÉ VÉÉB* =ºÉEòÉä ºÉÉvÉxÉ EòÖUô Eòäxpù ºÉ®úEòÉ®ú nùä +Éè®ú EòÖUô +É{É nùäÆ* {ÉÚ´ÉÒÇ Ê´ÉºiÉÉ®úÉäÆ Eòä Ê±ÉB Ê´É¶Éä¹É ªÉÉäVÉxÉÉ ¤ÉxÉÉxÉÒ ½þÉäMÉÒ* ªÉÉäVÉxÉÉ +ÉªÉÉäMÉ xÉä <ºÉ ºÉ¨¤ÉxvÉ ¨ÉäÆ EÞòÊ¹É ¨ÉÆjÉÉ±ÉªÉ ºÉä ¤ÉÉiÉ ¦ÉÒ EòÒ ½þè* ¨ÉèÆ JÉÖnù <ºÉ ¤ÉÉiÉ EòÉ |ÉªÉixÉ Eò®ú ®ú½þÉ ½þÚÆ ÊEò {ÉÚ´ÉÒÇ ®úÉVªÉÉäÆ Eòä Ê±ÉB BEò ]ªÉÚ¤É´Éè±É ¤Éäºb÷ ªÉÉäVÉxÉÉ ¤ÉxÉÉªÉÒ VÉÉB*

So for these sectors -- the sector of concern, water, agriculture, infrastructure -- the Plan says, in the Eighth Five Year Plan, the additions to public infrastructure, whether it is power or communication has been one of the lowest in any Five Year Plans. These are the areas in which the Approach Paper wants to concentrate.

What are these areas? These are basic minimum services, the lives of our people, agriculture and rural development, infrastructure, science and technology. In these areas, in fact, we are saying, we will do more detailed planning. We will plan for policies, involvement of the community, involvement of the private sector, involvement of cooperatives and voluntary organisations, involvement of modern technology within the country, outside and we will focus on these in greater detail. For the rest, we want to pursue the path of economic reforms so that we keep on achieving higher and higher agricultural, industrial and overall rates of growth. So these are the kinds of strategies talked about.

Take science and technology. A programme, again, focuses both on policies as well as the role of the State. We have started with that; we were able to persuade the Finance Minister. We have these large scientific establishments which are there for the last forty or fifty years, like CSIR, which has been there for the last almost fifty years. So if we are able to relate them with the solution of problems, every rupee that they earn in terms of bringing science to application, the Government gives them an additional rupee. It is one of the most powerful incentives that is being given anywhere in the world rate now for a science establishment to relate to the solution of problems; or we have set up a Technology Development Board where we say we look at projects where science establishment sits with large industry, gets some contribution from industry and thinks out the solution of major problems which have ripple effects. This does not mean that the State will not have its own Plan.

I have announced, as Minister of Science and Technology, a Suvarno Jayanti Scheme which says that `if any young Indian dares to say that he is going to do a global research, State of the Art research, world ranking, if he gives a project, we will fund it for you'; or whether it is the space sector where we are committed now developing the cryogenic engine. We are successful now in launching satellites up to 2000 kg. and the cryogenic engine is making progress; or whether it is nuclear energy getting into the thorium cycle, the fast breeder reactor. This year we have provided funds for almost all our ongoing projects as well as some of the new ones which are coming through.

So, we are saying that in a few sectors we will plan in detail. We have great concerns for problems of employment, poverty removal, in the employment area, widespread agricultural growth. One of the strategies suggested is the widespread agricultural growth, which is the basic agricultural strategy of the Plan, which is described in the Plan Document, so I do not want to take time on it but I can respond later on.

But in every district, we would like that where there are agro-processing opportunities or where there is additional demand, then the small farmers, the labourers should develop a project, so that they can take advantage of these facilities; so that the talk of wider markets is not just how metropolitan areas are but it starts linking up with the base of our economy which is our farmers, our labour force and our artisans; so that expanding markets at the regional, national, global level relate with our work force and the technology that we need for upgrading of skills, transport mechanisms, quality control, are the kinds of projects which we would like to have in every district in India. That is what the Approach Paper is saying.

But it recognises that in the short run, we may not be able to achieve the objectives. There will be poor people in India, there will be unemployed people and for them we have suggested and it has been accepted by the Government that there will be an Employment Guarantee Scheme. Anybody in India, who wants work at the ongoing wage rate -- it is a demand driven system -- will be given work in the Ninth Five Year Plan.

Now, these are the kinds of things which we want to develop more. I must report to you that in the National Development Council, there was a lot of discussion on the employment part. I am only giving the broad strategy and I think that these are the things which we need to spell out in detail.

Madam Chairperson, I do not want to give a very long speech because many of these are there in the Approach Paper. I think, since the hon. Members did give me an opportunity, I thought that I would give you some of these kinds of exciting things that are happening in the Planning Commission and in the discussion that we have had on planning in the National Development Council and in Rajya Sabha.

I would say that I am really looking forward to this discussion. There are some very senior and very experienced Members in this House. In addition, I do not mind saying since the first time I worked in planning. I am basically a University teacher, who worked in Gujarat but in 1974 I was asked to come to the Planning Commission as an Adviser. I had always found the discussions in Lok Sabha very instructive and I remember the days of sitting in the Official Gallery and listening very carefully to the Members. It is because you give us the perception of the strength of our people, of their problems and how we can make our resources go further.

I would only say that the Planning Commission is very clear that these are not easy things. We are talking about some of the most fundamental problems of the Indian economy. But, I think, the Planning Commission has made an effort to try and re-orient planning to the demands of the country in the 1990s. It is aware of the fact that markets have a great potential. The decentralised markets have a great power and they can be used to the benefit of our people. But it does give the message that where markets fail, where markets are not there, then the State will intervene. I do want to tell those who think that that should not happen that India does not believe in that. It takes planning seriously and that kind of intervention on selected areas, on important national priorities whether required for the self-reliance of the country or for seeing to it that the poorest of the Indians has the minimum requirements that he needs, will continue.

MR. CHAIRMAN: Motion moved:

"That this House do consider the Approach Paper to the Ninth Five Year Plan (1997-2002) laid on the Table of the House on the 26th February, 1997."

SHRI JAG MOHAN (NEW DELHI): Thank you Madam for giving me this opportunity.

After I glanced through this Approach Paper and after I heard the hon. Minister, it reminds me only one thing -- "

Ênù±É ¤É½þ±ÉÉxÉä EòÉä MÉÉÊ±É¤É ªÉä JÉªÉÉ±É +SUôÉ ½þè*"

We know what is the condition of this paradise which we call `India'. A sheer glance of this Approach Paper will tell us that it is an exercise in wishful thinking, it is an exercise in deception and it is an exercise in manipulation of figures.

I do not know by what magic the Minister can reconcile the fundamental forces of globalisation and marketisation with his allocated planning. It is basically irrational and wrong and there is no explanation for that. He has said, `Yes, we will intervene'. How will he intervene? What effect will that intervention actually have on the ground? To my mind, this Ninth Five Year Plan is nothing but a loose denture, fabricated denture, which will not be able to bite into the ever hardening crust of the Indian planning and economic problems.

The hon. Minister has spoken about science, technology and other things. I will come to those and tell what the actual picture is. If the Planning Commission and this Government had been serious about the fundamental problems of this country, it should gave done some soul-searching, it should have seen that why the country is in such a poor shape after eight Five Year Plans, after more than four decades of planning. Why is it so? If he sees the report card of the last so many years, he will get a horrifying picture. It is not that we have not advanced much. We may have. We had the Green Revolution in some way. We had the White Revolution in some way. Our life expectancy has increased. But the issue is not advancement per se. The issue is of a comparative advancement, how the world has advanced and how we have advanced. I will give him the figures which will give the real reality.

[NEXT PAGE]