New Delhi: Amid slow pace of economic growth, 12th five-Year plan is going to begin this April with tough targets of economic development. It will be hard for the government to achieve nine percent GDP growth rate during the 12th Five-Year plan in the midst of uncertainty in global economic condition, slowness in Domestic Industrial Sector and the decline in the domestic savings.

Planning Commission’s draft for 12th Five-year plan too doesn’t seem optimistic about achieving nine percent growth rate. It is feared that fiscal 2012-13 may bring for government various challenges pertaining to the growth rate.  Government’s treasury in its present state doesn’t seem to fulfill the requirements of the investment needed to increase the growth rate.

Government’s current fiscal deficit seems to be already touching six percent figure owing to lack of consonance between expenditure and earning. Moreover, there’s also no hope of growth in government’s revenue income during the next financial year which may affect growth rate.

Planning Commission itself has admitted that the state of uncertainty in the global economy still persists which can hinder government’s quest to raise its revenue collection. In this situation, government may find it hard to increase relative budget allotment every year under the plan period.

Growth of states can also be increased under this five year plan period. Currently, growth rate of states are comparatively better than Centre. But according to the economic analysts, states’ growth rate may take a hit by the time plan period reaches its third year which will affect country’s growth.

In 11th Five-year Plan (2007-2012), government targeted nine percent growth rate, but at the end, it had to satisfy itself with 8.2 percent growth which was more than the 7.8 percent rate of 10th five-year plan.