The 8th Five Year Plan (1992-97) Targets

Sector
7th Plan
Actual
(1985-90)
8th Plan
(1992-97)
Target
Achievement
(1993-94)
Achievement
(1994-95)
GDP growth per annum 5.8% 5.6% 4.3% 6.3%
Domestic Savings as a % of GDP 20.3 21.6 20.2 24.4
Investment as a % of GDP 22.7 23.2
Foreign Capital inflow as a %
of GDP
1.6 1.4
Current account Deficit
as % of GDP
2.4 1.6 0.1 0.7
Total Plan investment outlay
(Rs billion)
3,480 7,980
Exports as % of GDP 9.9 10.1
Imports as % of GDP 10.3 10.9
Total Exports (Rupees million) 697,510 823,380
Total Imports (Rupees million) 731,010 887,050
The 8th Five Year Plan was envisaged to focus on :
Population control
Employment generation
Universalisation of elementary education
Plan Allocation
In the 7th Plan, 70% of the total budgetary support to the Central Ministries went to
social, infrastructure and agriculture sectors. In the 8th Plan this figure went up to
81.7%. The investment in agriculture has been declining as a proportion to the total
investment. Agriculture has to keep growing under the constraint of limited
availability of land, for which non-agricultural demands are also increasing.
Financing the Plan
At the time of formulation of the 7th Plan, it was envisaged that nearly 40% of the
total public sector outlay would be financed by the balance from the current revenues
and by contribution from public enterprises. This, ultimately, turned out to be only
20% of the total outlay and the balance was met through borrowings - which
adversely affected the Balance of Payments situation. Thus, these contributions from
State Public sector enterprises have to increase substantially in the 8th Plan.
Generation of more savings by the government also becomes a crucial element
underlying the financing pattern of public investment. Crucial decisions relating to
resource mobilisation and containment of expenditure (including subsidies) are called
for in order to fund the 8th Plan in a non-inflationary manner and to avoid a debt
related problems.