constituted - of Planning Commission

per cent in 2011-12(BE).Recent fiscal developmentsThe level of aggregate resources has a critical bearing on the size of the Plan.Of the three components of aggregate resources, namely Current Revenues,Non-Debt Capital Receipts and Borrowings, the largest component hitherto hasbeen Borrowings. The implementation of the FRBMA had implications for thesize of the Tenth Plan in two ways: it limited the level of borrowings under thepath laid down by the rules; and in seeking a graduated path to eliminaterevenue deficit it compressed the level of the revenue expenditure. The Balancefrom Current Revenues turned positive in the Tenth Plan on account of thelatter. In the Eleventh plan, the fiscal policy stance was broadly expansionary(except 2007-08) and appropriately so considering the macroeconomicenvironment that was affected by the global crisis. For the purposes of thisReport the BE 2011-12 has been reckoned in all calculations for the EleventhFive Year Plan and used as a base year for making projections for the TwelfthFive Year Plan.Gross tax revenue, which had grown at an Average Annual Growth Rate(AAGR) of 20.5 per cent in the Tenth Plan, has slowed down in the Eleventhplan with AAGR at 15 per cent. A part of the growth owes to the performancein 2007-08; otherwise growth was muted due to indirect tax cuts and demandslowdown. Non-tax revenues have grown at an AAGR of 17 per cent in theEleventh Plan as against 4.3 per cent in the Tenth Plan; much of the jump owesto the one-off nature of proceeds of 3G/BWA telecom spectrum auctions in2010-11. Thus current revenues for the Eleventh Plan as a whole have grown by13.7 per cent as against a level of 16.7 per cent in the Tenth Plan.The proportion of Non-Debt Capital Receipts to aggregate resources over theyears has come substantially. As such, these have not been a major source offinance in so far as Centre’s resources are concerned; more so since theWorking Group Report on Centre’s Financial ResourcesPage-6