| 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 :
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.
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.
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