National Development Council starts discussion on three-year development plan

National Development Council (NDC), the highest policy-level body in the country, on Friday started discussion on the 13th three-year plan approach paper formulated by the National Planning Commission (NPC), which, among others, envisages attaining average economic growth rate of six percent per annum through next three years and putting the country in the ranks of developing nations by 2022 from the current status of least developed country. Chairman of the Interim Election Council Khil Raj Regmi, different ministers, high-ranking government officials, senior political leaders, experts and the private sector are participating in the meeting which will continue till Saturday. The meeting will discuss the content of the three-year plan for the last time and finalize it. Once the document is finalized, the government will refer to it while formulating country´s development policies and plans in the three years to fiscal year 2015/16. The NPC had prepared the draft of the plan by holding discussions with various stakeholders at local and central level as well as with development partners. Addressing the function on Friday, Chairman Regmi said: “It is possible to lift the country from the grouping of least development countries and put it in the category of developing nations, as we have already met one of the three conditions required for it.” To meet the goal of graduating to the rank of developing nations by 2022, the three-year plan has set a target of attaining six percent economic growth rate per annum for the next three years. Although the target is lower than seven percent growth rate per annum that is required for the country to graduate to the list of developing nations by 2022, the government believes the country may attain higher growth rates in the latter years based on progress made in the three-year period. To attain six-percent growth rate, the plan has focused on agricultural growth rate of 4.5 percent per annum till 2015/16. It has also set a target of attaining 6.7 percent growth rate per annum in non-agricultural sector till 2015/16. These growth rates are expected to trigger employment growth rate of 3.2 percent per annum till 2015/16, while reducing population living below the poverty line to 18 percent. To meet these goals, the plan has stressed on effective mobilization of public sector, private sector and cooperatives, Chairman Regmi said. He also said emphasis should be laid on further development of physical infrastructure and expansion of social services. The plan, among others, has stressed the need to enhance good governance in public and other sectors, empower targeted groups and embrace environment-friendly approaches to ensure inclusive and sustainable development. Other primary objectives of the plan are to develop hydropower and energy sectors, commercialize and diversify agricultural sector, enhance farm productivity, and increase access to basic education and health services, drinking water and sanitation. The plan has also given emphasis to development of roads, physical infrastructure, and tourism, industrial and trade sectors, along with conservation of natural resources and environment. To achieve these goals and meet other recurrent expenses, the three-year plan aims to spend Rs 1.62 trillion till 2015/16. Of this, Rs 960.69 billion rupees will be spent to cover recurrent expenses, while Rs 277.94 billion will be allocated for capital spending. These expenses, according to the plan, would be met through estimated revenue collection of Rs 1.13 trillion in the three-year period, while the rest would be raised through domestic debt, and grants and loans from development partners. Chief Secretary Lila Mani Poudel said: “The three-year plan should be formulated by incorporating targets that could be achieved and not based on idealistic principles.”