Working Groups for the Eleventh Five Year Plan (2007-2012)

The Assessment of the Centre's Financial Resources

Dated 19 May, 2006

In the context of the formulation of the Eleventh Five Year Plan (2007-2012), it has been decided to constitute a Working Group on the assessment of Financial resources of the Central Government.

2. The composition of the Working Group is as follows:

1) Dr. Ashok Lahiri, Chief Economic Adviser, M/o Finance Chairman
2) Dr. Parthasarathi Shome, Adviser to Finance Minister Member
3) Dr. Pronab Sen, Pr. Adviser (PPD), Planning Commission Member
4) Chairman, CBDT Member
5) Chairman, CBEC Member
6) CGA, M/o Finance Member
7) JS (PF-II), M/o Finance Member
8) JS (Budget), M/o Finance Member
9) JS, D/o Public Enterprises Member
10) Executive Director (RBI) Member
11) Director (PPD) Member
12) Dr. Indira Rajaraman, Senior Fellow, NIPFP Member
13) Dr. Tapas Kumar Sen, Senior Fellow, NIPFP Member
14) Dr. Shankar Acharya, Honorary Professor, ICRIER Member
15) Adviser (FR) Member
16) Dr. Pulin B Nayak, Professor, Delhi School of Economics Member
17) Sh Arun Kumar Deputy Adviser of FR Division Member Secy.

3. The terms of reference of the Working Group is as follows:

  1. To analyse the resource position of the Centre in light of the implementation of the recommendations of the Twelfth Finance Commission, fiscal responsibility legislation, tax on services, and other policy changes in that regard;
  2. To examine the relevance of the Plan-Non-Plan distinction in the expenditure of the Central government and to suggest changes, if required, in the definition of plan expenditure;
  3. 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;
  4. To examine whether, and to what extent, investment by PSUs (Central) financed through Internal and Extra-budgetary Resources (IEBR) should continue to form a part of the'Plan'.
  5. To examine the role of SPVs, PPP and other innovative methods of additional resource mobilisation by the Central Government, in financing Plan expenditure
  6. On the basis of the above, to suggest the basis for making projections for 'resources' and 'expenditure' for the Centre for the Eleventh Plan period;
  7. To prepare and present projection(s) on the scheme of financing for the Eleventh Plan for the Centre (including UTs without legislature).

4. The Chairman of the Working Group may constitute sub-groups and / or co-opt additional members as may be considered necessary.

5. The expenses towards TA / DA of the official members in connection with the meetings of the Working Group will be borne by the respective offices. 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 borne by Planning Commission.

6. The Working group should endeavor to finalize its report within 4 months from the date of this order.