Planning commission has suggested an increase in public expenditure in the twelfth plan to

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Speaking at Economic Editors’ conference here on Tbursday, Planning commission deputy chairman Montek Singh Ahluwalia said, “Public expenditure particularly on health needs to be raised. This is something we have been considering.” Health expenditure in the country is presently about 0.9 per cent (zero point nine per cent) of the gross domestic product.

“We would like to raise the expenditure to two and three per cent of the GDP, Ahluwalia added. He said, “The responsibility to deliver education and health is not on the private sector, but on the public sector.”

He said the focus was intended to make GDP growth more inclusive. However he admitted this year, growth was likely to be lower than estimated. He however added, “The 12 th plan aims for a GDP growth of 9 per cent per annum.”

There were however challenges for meeting this ambitious target, he admitted. The challenges outlined included the Energy sector, water and land usage patterns were a major challenge, he added.

The plan also was making efforts to raise the agriculture sector growth from the present 3.5 per cent. There is a need to modernize markets.

But he added that some of the legislations relating to markets fell within the purview of the states. He said the focus of the 12 th plan was on addressing supply side issues in the domestic economy to contain inflationary pressures. “If we succeed in that, we will not generate more inflation,” he added.

Answering questions on bring public private partnership projects within the purview of the Right to information Act, Aluwalia said, “I am off the view it should be brought within the purview of the RTI.”

"In the 11th Five Year Plan we had the JNNURM. We now think that there is need for a new JNNURM. The details have not been finalised yet,” Planning Commission deputy chairman Montek Singh Ahluwalia said while addressing the Economic Editors conference here.

The deputy chairman said the resources for urban development cannot solely come from the central government.