Savings In 9th Plan Put At 25.6% Of Gdp
The average gross domestic saving is expected to be 25.6 per cent of GDP at current market prices. The average is therefore expected to go up by 3.1 per cent. The corresponding figure for the first three years of the eighth plan is 22.5 per cent.
The financial surplus of households is likely to fall from 74.8 per cent to 68.1 per cent over the plan period, according to a committee headed by former RBI deputy governor SS Tarapore. The report is the final report of the working group on savings.
The committee has projected total household savings at Rs 8,05,634 crore at 1996-97 prices. Private corporate savings is expected to be 4.3 per cent of gross domestic product (GDP) and public sector saving is expected to be 2.4 per cent of GDP.
The committee set up to assess the savings position - domestic and foreign - for the ninth five year plan recently submitted its report and found that the financial surplus of households is expected to fall over the plan period.
The foreign saving inflow for the period is estimated at 2 per cent of GDP. The investment rate will be 27.6 per cent of GDP.
Total household savings are projected at 18.9 per cent of GDP. Of this, the new savings rate will be 10.6 per cent of GDP.