New Delhi, August 20
At a time when the UPA government is facing criticism for not pushing reforms, Prime Minister Manmohan Singh said today given the uncertainties in the global economy, and the challenges in the domestic economy, a 9 per cent growth target for the 12th Plan is feasible only if some difficult decisions can be taken.

Chairing a full meeting of the Planning Commission to discuss the approach paper for the 12th Plan, the Prime Minister said a target of 9 per cent growth has been set for the plan period.

He added that agricultural growth in the 11th Plan as per latest estimates will be 3.3 per cent, exceeding the target.

On the issue of land acquisition, Dr Singh conceded that the issue has become highly controversial and there is a need for a new legislation which strikes a balance between the need for fair compensation to those whose land is acquired and to ensure that land acquisition does not become an impossible impediment to meeting the needs for infrastructure development, industrial expansion and urbanisation.

Dr Singh said health, education and skill development were key areas of the strategy of inclusive development in the 11th Plan and they will continue to be focus areas in the 12th Plan.

He said while ensuring that these sectors receive adequate resources there is a need to ensure that resources provided are spent to achieve maximum efficiency in terms of outcomes.

The PM said achieving 9 per cent growth will require large investments in infrastructure sector development. He stressed that a combination of public investment and Public-Private Partnerships for infrastructure development was required to address present infrastructure shortages.

He said the Planning Commission has rightly endorsed the importance of the process of fiscal correction announced by Finance Minister Pranab Mukherjee even if this means that total resources available for the Plan in the short run will be limited.

Resource limitations imply the need to prioritise carefully. Some priority areas like health, education and infrastructure will have to be funded more than others, he said.