1. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 1 Karnataka’s 11 th Five Year plan Some Aspects and Issues

2. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 2 Approach paper GDP growth targets need to be supplemented by monitorable targets for other dimensions of performance Agriculture should grow at least at 4 %; 70 million non- agri jobs to be created Investment rate should go up to 35.1% from 27.8%; Half of this increase has to come from public investment MSMEs to be encouraged Marginalised groups to be given special attention Increase of 2.5 % in GBS required: Health 1 %; Irrigation and Rainfed Areas 0.5 %; Education 0.75 %; NREGA 0.75 %; Infrastructure x %; offset by some weeding out and reprioritisation

3. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 3 Public Investment States GBS to Plan to grow from 4.62% (06-07) of GDP to 7.26% (11-12); average 5.86%; but does not factor in pay revision PPP in infrastructure needed to bridge resource gap; should achieve additional supply at reasonable cost; pvt resources should go into public projects

4. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 4 Karnataka Monitorable Targets TargetCurrent Level 11 th Plan Goal NFHS 3 IMR492443 MMR22876 TFR2.41.72.1 Malnutrition (0-3) 43.922.041 Anaemia (15-49 ) 42.421.250.3 Sex ratio (0-6) 946969

5. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 5 Karnataka Monitorable Targets TargetCurrent Level 11 th Plan Goal Literacy Male76.1092.38 Literacy Female 56.8785.95 Gender Gap 19.26.4 Drop out Rate (EE) 45.5324.72 Poverty Ratio24.912.4

6. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 6 Karnataka Poverty Ratios State/ Nation RuralUrban Total KarnatakaNo. of persons (lakhs) (%)No. of persons (lakhs) (%)No. of persons (lakhs) (%) URP * 2004-05 75.05 20.863.8332.6138.8925.0 1993-94 95.99 29.8860.4640.14156.4533.16 MRP** 2004-05 43.3312.053.2827.296.017.4 1999-2000 59.9117.3844.4925.25104.4020.04 URP*Uniform (30 day)Recall period for all consumption items **MRP:365 day for 5 infrequently purchased non-food items and 30 days for others

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11. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 11 SECTORAL PERFORMANCE OF KARNATAKA DURING NINTH PLAN (Rs. Crores) Sl. No. Major Heads of DevelopmentNinth Plan (1997-02) - Projected Outlay (at 96- 97 prices) % age to Total Outlay Ninth Plan (1997-02) - Actual Expenditure (at current prices) % age to Total Expenditure 1.2.3.45.6. I.Agriculture & Allied Activities 1464.006.261414.374.54 II.Rural Development 1178.615.041287.464.14 III.Special Area Programmes 555.002.37359.921.16 IV.Irrigation & Flood Control 6170.0026.379309.2529.91 V.Energy 3740.3615.984422.2014.21 VI.Industry & Minerals 1026.004.381052.633.38 VII.Transport 1740.007.442307.287.41 VIII.Communications 0.00 IX.Science & Technology 40.000.1720.500.07 X.General Economic Services 105.000.45731.102.35 XI.Social Services 7206.0330.809931.9831.91 Education 1713.007.322094.286.73 Medical & Public Health 1100.004.701131.003.63 Water Supply & Sanitation 1350.005.772470.897.94 Housing 938.034.011512.644.86 Urban Development 750.003.21906.472.91 Others Social Services 1355.005.791816.705.84 XII.General Services 175.000.75288.870.93 Grand Total23400.00100.0031125.56100.00

12. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 12 SECTORAL PERFORMANCE OF KARNATAKA DURING TENTH PLAN (Rs. Crores) Sl. No. Major Heads of DevelopmentTenthPlan (2002-07) - Projected Outlay % age to Total Outlay TenthPlan (2002-07) - Anticipated Expenditure % age to Total Anticipated Expenditure 1.2.7.8.9.10. I.Agriculture & Allied Activities 2346.945.392865.544.98 II.Rural Development 2227.725.112524.624.39 III.Special Area Programmes 640.741.47293.290.51 IV.Irrigation & Flood Control 14176.5732.5517099.2829.73 V.Energy 2266.955.207439.1012.93 VI.Industry & Minerals 1452.873.34937.211.63 VII.Transport 4854.4411.146968.3712.12 VIII.Communications 0.00 3.000.01 IX.Science & Technology 25.780.0680.500.14 X.General Economic Services 895.632.061758.093.06 XI.Social Services 14182.9832.5617051.4329.65 Education 1851.014.254028.277.00 Medical & Public Health 1530.523.511136.921.98 Water Supply & Sanitation 3057.197.022842.174.94 Housing 2583.305.932981.745.18 Urban Development 3229.397.413387.965.89 Others Social Services 1931.574.432674.374.65 XII.General Services 487.601.12495.940.86 Grand Total43558.22100.0057516.37100.00

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14. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 14 Social Sector Expenditures SAR declined from 41% to 34% over 90-91 to 2002-03 in spite of pay revision SPR declined by 5% over the same period Desirable HER of 5% vs actual of 3.28% in 2002-03; but better than Kerala and TN; highest growth rate among states in per capita HDR estimates reqmt at extra 2.5% of GSDP for meeting 10 th Plan targets; of which 0.5% may come from GoI

15. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 15 Stock Taking New plan formulation is the occasion to subject schemes to evaluation and ZBB GoI has reduced CSSs from 155 to 82 and several Central Sector Schemes and is continuing the process MTFP is virtually a rolling FYP, both for plan and non-plan expenditures

16. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 16 Regional Imbalances Rs 307.16 crores additional allocation for 114 talukas based on CCDI Use of Inverse of CCDI without weighting by population could lead to anomalous results Plan and Non-Plan allocations should be taken together, especially in social sectors Sectoral components of the CCDI could be linked to sectoral allocations

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18. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 18 The Way Forward - KHDR 1999 HDR – state at median level; recommended increased outlays and better targeting, spatially and towards poor and marginalised groups 2005 HDR: Healthcare spending to go up to 3 % of GSDP; education to 6 %; better targeting “Conspicuously successful” programmes are housing, drinking water, electrification of SC/ST houses; but healthcare and education not so

19. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 19 The Way Forward - KHDR Participatory decision making in gram sabhas has not led to priority to HD agenda GPs should monitor a set of HD indicators periodically HD indicators should be used in resource allocations

20. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 20 Central Assistance – Likely Trends FRBM Act will be the binding constraint GoI’s RD to be reduced to Zero in 2008-09 from 1.5 % in 2007-08 BE; since all CA is now only grants, this target directly impacts CA NCA likely to grow more slowly than CA for Flagship schemes, Bharat Nirman etc ? 07-08 NCA is 10 % over 06-07; Rs 16408.02 crs vs total of Rs 50160 crs (excldg CSS) Share in Central Taxes increasing faster than NCA (25.63% BE 07-08 over BE 06-07 vs 10 %)

21. 5 May 07R. Sridharan, Jt Secretary (State Plans), Planning Commission 21 PPP and Viability Gap Funding IIFCL set up to provide long term debt finance, either directly or by refinance Will cover up to 20 % of project cost Priority for PPP projects awarded to pvt cos through competitive bidding; public sector cos also covered PPP project – one based on a contract/concession agreement between Govt or stat entity on one side and a pvt co on the other for delivering an infrastructure service on payment of user charges IIFCL will finance only commercially viable projects (Incldg those that attain viability after VGF) 46 (2) projects, cost Rs. 60373.50 (4785.07) crores, IIFCL funding Rs. 6541.92 (568) crores sanctioned so far For VGF, govt should certify that viability cannot be improved by higher tariff, longer concession period, lower capital cost etc. VGF is the bidding criterion