constituted - of Planning Commission

target of 9 percent growth, which on a sustained basis, is yet to be achieved.The second is an even higher target of 9.5 per cent average growth for theTwelfth Five Year Plan. After using several macro-economic models to examinethe feasibility of attaining these targets in terms of internal consistencies andinter-sectoral balances, it considers the likely size of the Public Sector Planbased on the preliminary estimates made available by this Group for thatpurposes. Thus, the size of the Plan is in a way critical to the achievement of theoutcomes of the Plan; notwithstanding the likely efficiency gains in terms of thefocus on governance reform.The Working Group went about its task through constituting four Sub-Groupsto undertake comprehensive assessment of the major components determiningthe financial resources of the Centre: (i) Tax Revenues, (ii) Non-Tax Revenues,(iii) Non-Plan Expenditure and (iv) Internal and Extra Budgetary Resources(IEBR) of Central Public Sector enterprises (CPSEs). The composition of theSub-Groups, including co-opted additional members/invitees from outside theGroup, is at Annexure-II. The four Sub-Group reports were used as inputs forthis Report. The Report has been organised in the following manner: a briefintroduction on the economic backdrop to the assessment of the resourcerequirement, its approach and the projected level of resources for the TwelfthPlan is in this introductory chapter; this is followed by Chapter 2 on assessmentof the Tax Revenues for the Twelfth Five Year Plan; Chapter 3 addresses theavailable Non–Tax Resources and Other Capital Receipts available forfinancing the Plan; Chapter 4 discusses the Non-Plan Expenditure to analyse theaggregate resources available for the Plan and details the assumptions behindthe projections; and Chapter 5 details the IEBR of the CPSEs and proceedslikely in the next five years.The central mandate of this Group is to make forecasts on the availableresources for the next five years for financing the Plan. While the Group did sousing the best data and models available, it is worth remembering that economicWorking Group Report on Centre’s Financial ResourcesPage-2