Steering Committee for the Eleventh Five Year Plan (2007-2012)

Financial Resources

Dated 19 May, 2006

In the context of the formulation of the Eleventh Five Year Plan, it has been decided to set up a Steering Committee on Financial Resources.

1. The composition of the Steering Committee is as under:-

2. The Terms of Reference of the Steering Committee are as follows:

1. To analyse the resource position of the Centre and the States with particular reference to the implementation of the recommendations of the Twelfth Finance Commission, fiscal responsibility legislation(s), debt restructuring, introduction of VAT, tax on services, flow of EAP funds and other policy changes in that regard;
2. To examine the basis of distribution of Central plan assistance to States (including the Gadgil-Mukherjee formula and ACAs) and suggest changes if required;
3. To examine the dispensation to Special Category States in the allocation of Central Plan assistance and suggest changes if required;
4. To examine the relevance of the Plan-Non-Plan distinction in the expenditure of the Central government and State governments and to suggest changes, if required, in the definition of plan expenditure;
5. To examine the classification of expenditure in terms of 'Revenue' and 'Capital' especially in light of the requirements under the Fiscal Responsibility Act and its implication for plan programmes;
6. To examine whether, and to what extent, investment by PSUs (Central and State) financed through Internal and extra-budgetary Resources (IEBR) should continue to form a part of the 'Plan'.
7. To examine the role of SPVs. PPP and other innovative methods for additional resource mobilisation by the Central and State governments for financing Plan expenditure
8. To examine the availability of financial resources for private investment through domestic and foreign savings during the eleventh plan;
9. To examine critical policy issues which would affect the availability of resources for both public and private investment and make recommendations in this regard.
10. On the basis of the above, to suggest a basis for making projections for 'resources' and 'expenditure' for the Centre and the State during the Eleventh Plan period;
11. To prepare and present projection(s) on the scheme of financing for the Eleventh Plan of the Centre and the States (including UTs) separately (and combined).

3. The Chairman, if deemed necessary may co-opt additional members in the Steering Committee or in the Working Groups on the Centre's Resources, on State's Resources and on Savings.

4. The expenditure on TA/DA etc. of official members in connection with the meetings of the Steering Committee will be borne by the respective Government/Department/Institutions' to which the member belongs. Non-official Members will be entitled to TA/DA as admissible to Grade I officers of the Government of India and this expenditure will be paid by the Planning Commission.

5. The Steering Group should endeavor to finalize its report within 6 months from the date of this order.

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