constituted - of Planning Commission

made in R.E. 2010-11 and `12,000 crore in B.E. 2011-12 for this purpose.Based on the recommendations of the Thirteenth Finance Commission andlikely other non-plan grants, total non-plan grants to States and UTs have beenestimated at 0.7 per cent of GDP in 2012-13 and 2013-14. The Group, for theyears 2012-13 and 2013-14, has retained the Grants to States and UTs at 0.7 percent of GDP. Thereafter a 5 per cent growth has been applied for the remainingperiod.Other Non-Plan Expenditure: Other Non-Plan expenditure coversexpenditure on election, social economic services, general services (excludingpolice and pension). On these figures a percentage increase of 5 per cent perannum during the Twelfth Plan period has been made.Capital ExpenditureDefence Capital: During the Eleventh Plan period, Defence CapitalExpenditure grew from `37,462 crore to `69,199 crore resulting in a 84.72 percent increase. The Group was informed that the Services’ Long TermPerspective Plan (2012-27) was under finalization and the plan projectionsbased on the proposals therein, would be known only towards end ofNovember, 2011. Thus, projections of fund requirement on account of approvedplans/schemes could not be made at this juncture. The group has assumed anannual growth of 15 per cent for Defence Capital Expenditure for the TwelfthPlan period and based on this, such expenditure will increase to `1, 39,184 by2016-17.Loans to States and UTs: Loans to States and UTs have been kept at BE 2011-12 levels for the Plan period.Loans to Foreign Governments: Loans to Foreign Government have also beenkept at the same level as in BE 2011-12 for the duration of the Twelfth Plan.Working Group Report on Centre’s Financial ResourcesPage-46