Fiscal consolidation needs priority, stresses PM

August 20th, 2011 - 2:40 pm ICT by IANS  

Manmohan Singh New Delhi, Aug 20 (IANS) Prime Minister Manmohan Singh Saturday said the process of fiscal consolidation needs to be given priority even if it limits the availability of resources for developmental activities in the short run.

Chairing a meeting of the full Planning Commission, Singh said the plan panel has endorsed the importance of the process of fiscal correction announced by the finance minister, “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, e.g. health, education and infrastructure, will have to be funded more than others,” the prime minister said in his opening remarks at the full Planning Commission meeting at his official residence here.

The prime minister emphasised the need for more efficient use of available resources in view of the constraints.

He said the 12th Plan period approach paper has made certain suggestions like giving implementing agencies greater freedom, flexibility, promoting convergence between resources from different plan schemes, and the need for much greater attention to capacity building, monitoring and accountability to ensure optimum utilisation of the available resources.

“We need to engage the states on all these issues,” he said.

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