Đà Lạt 'Combining reforms with inclusive growth is our key focus'-spun2

'Combining reforms with inclusive growth is our key focus'
The Centre intends to make use of the recent executive and legislative action to reiterate its reform agenda to the States within the National Development Council (NDC) Meeting on December 27.
Although it is knowledgeable that States for example Bihar will again press the interest in Special Category status, the Government is hopeful of addressing key issues, Minister of State for Planning and Parliamentary Affairs Rajeev Shukla told Business Line within an interview. Excerpts:
The overarching objective of the 12th Plan, as proposed within the draft, would be to achieve sustainable and more inclusive growth. Twelve key economic challenges and priority areas happen to be identified for accomplishing this. These are, improving the capacity of growth, better preventive and curative healthcare, enhancing skills and faster generation of employment, improved use of quality education, handling the environment, managing urbanisation, markets for efficiency and inclusion, rural transformation and sustained growth of agriculture, decentralisation, empowerment and information, accelerated growth and development of transport infrastructure, technology and innovation and securing the way forward for India.
I expect the NDC to go over threadbare and approve these, if necessary, with qualitative improvements.
Which issues do you expect the States to boost?
Many State-specific issues could be raised, such as inclusion of more districts under the Backward Region Grant Fund (BRGF), grant of special category status, extension of Integrated Action Plan to wider areas and ask for for funds in the form of Bonus.
What's going to function as the Centre strategy?
The agenda for growth has been set following the defeat of the motion against foreign direct investment (FDI) in retail. This also paved the way for consideration and passage of key economic Bills for example Banking Bill (in Lok Sabha and Rajya Sabha) and Companies Bill (in Lok Sabha).
So, the federal government victory in debate on FDI can be treated like a stepping-stone for further reform. Combining this with the concentrate on inclusive growth will be the key strategy.
The Planning Commission is in constant touch with State Governments. Each year, Annual Plans for each State are finalised after detailed discussions together. That which you be discussing is the more optimal and efficient utilization of available resources, as opposed to just increasing expenditure.
Do you think special status for 3 States, including Bihar, may also be discussed?
States, especially Bihar, are likely to raise this issue. The status of special category continues to be granted previously through the NDC with a States which are characterised by a number of features necessitating special consideration. Included in this are, hilly and difficult terrain, low population density, sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of State finances.
States during these categories possess a low resource base and aren't capable of mobilise resources for their development needs, even though the per capita income of some of these States is comparatively high.
Moreover, a number of these States were carved from former Union territories or districts of one other State, necessarily involving creation of overheads and administrative infrastructure that was from proportion to their natural resource base.
The Governments of Bihar, Jharkhand, Rajasthan and Odisha have requested Special Category status. The Planning Commission is examining the problem.
However, Bihar and Jharkhand have been given one-time additional Central aid of Rs 51 crore, each while Rajasthan and Odisha got Rs 60 crore each. Simultaneously, Bihar and Odisha were given Rs 1,500 crore and Rs 250 crore, respectively, as Special Plan under BRGF/Special Assistance in addition to Central assistance during 2012-13.
Are you able to shed more light around the Tax being proposed to curb the use of alcohol and tobacco?
A designated Tax to invest in an element of the health budget can result in reduced use of products that are harmful to health, such as tobacco and alcohol. We've just flagged this like a suggestion in the draft 12+t+h Plan. A final view is going to be taken after suggestions from various States.
How do you plan to raise resources to fund social programmes to be presented before the 2014 general elections?
We have no dearth of human and data resources. Further, there's increased inclination towards public-private partnerships. The Government may also generate many forward-looking reform initiatives at an appropriate time.
In the previous Plans, we mobilised sufficient funds for innovative schemes, such as MGNREGA, NRHM etc. Similarly, once the Government plans new social sector schemes, it might definitely mobilise the necessary funds.