Eighth Five Years Plan

The Eighth Five-Year Plan (1992-97) was launched immediately after the initiation of structural adjustment policies and macro stabilization policies, which were necessitated by the worsening Balance of Payments positions and the position of inflation during 1990-91. The various structural adjustment policies were introduced gradually so that the economy could be pushed to a higher growth path and improve its strength and thus prevent a crisis in Balance of Payments and inflation in the future. The Eighth Plan took note of some of these policy changes, which were to come about due to these reforms. The Plan aimed at an average annual growth rate of 5.6 per cent and an average industrial growth rate of about 7.5 percent. These growth targets were planned to be achieved with relative price stability and substantial improvement in the country's Balance of Payments.

Some of the salient features of economic performance during the Eighth Five-Year Plan indicate, among other things:

1. a faster economic growth,
2. a faster growth of the manufacturing sector and agriculture and allied sectors,
3. significant growth rates in exports and imports, improvement in trade and current account deficit and a significant reduction in the Central Government's fiscal deficit.

However, a shortfall in expenditure in the Central sector due to inadequate mobilization of internal and extra budgetary resources by the PSUs and various departments was witnessed. In the States sector, there as on for the shortfall was lack of mobilization of adequate resources due to deterioration in the balance of current revenues, erosion in the contribution of state electricity boards and state road transport corporations, negative opening balance, mounting non-Plan expenditure and shortfalls in the collection of small savings, etc. The total expenditure during the entire Eighth Plan stood at Rs.4,95,669 crore by taking 1996-97 (RE) as actual] at current prices as against envisaged total public sector outlay of Rs.4,34,100 crore (1991-92 prices) resulting in a 14.2 per cent increase in nominal terms. The Eighth Plan envisaged an annual average growth rate of 5.6 per cent. Against this, an average annual growth rate 6.8 per cent was achieved during this plan period.