Increase allocation for health, education in 12th Plan: Panel

Plan Panel today called for increasing the allocation for health and education sector in the 12th Plan (2012-17), even as the two key areas saw a shortfall in the utilisation of the projected expenses in the 11th Plan.

"Health and education received less than projected in the 11th Plan. Allocations for these sectors will have to be increased as percentage of GDP," the Commission said in a presentation before Prime Minister Manmohan Singh at a meeting of the full Plan Panel here.

In the 11th Five Year Plan (2007-12), the 'health' sector has seen utilisation of only 61 per cent of the projected investment. While the projection was Rs 1,23,9001, actual utilisation was only for Rs 75,533 crore.

Also 'education' sector saw actual realisation of 60 per cent of the projected investment for the sector at Rs 1,42,659 crore during the 11th Plan.

The Commission said that resource allocation in the health, education and skill development in the Centre's Plan would have to be increased by "at least 1 per cent point of GDP".

"Better health is not only about curative care but also about better prevention, clean drinking water, sanitation and better nutrition, child care. Convergence of schemes across ministries is needed," it said.

By the end of 12th Plan, the expenditure on health by Centre and states would increase from 1.3 per cent of GDP to at least 2 per cent and perhaps 2.5 per cent of GDP by the end of 12th Plan.

Other sectors which saw a shortfall in the initial projection are Women & Child Development (72 per cent), Agriculture (80 per cent) and Roads Transport & Highways (86 per cent) among others.

The presentation also said that sectors like power, railways, urban development and rural development saw more spending happening than projection.

While the fund specified for 'Power' sector was utilised in excess by 105 per cent, the figure for 'Railways' was 143 per cent, 'Urban Development' (163 per cent) and rural Development (122 per cent).

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