The growth of national income during 1989-90,the terminal year of the seventh five-year plan,fell sharply to 5.2 percent against the 11.22 percent rise recorded in the previous financial year.
However,the average annual growth of the economy as measured by the gross domestic product for the seventh plan(1985-90) as a whole works out to 5.6 percent against the target of 5 percent.
Stating that all sectors of the economy contributed to the positive GDP growth during 1989-90,the CSO figures showed that the agriculture sector registered a growth rate of 2.3 percent over and above the unprecedented growth rate of 16.3 percent during the previous year.
SHARE OF FOOD:However,the share of food items as a whole in the total consumption showed a further decline in 1989-90 as compared to the previous year, while the share of clothing, furniture, furnishings, appliances and transport services showed an increased trend.
This is mainly due to the large negative savings of the government administration which increased from Rs. (minus)8,453 crore in 1988-89 to Rs. 7,625 crore in 1989-90.
The decline in the net saving of the public sector is due to large negative saving of government administration and the increase in the consumption of fixed capital from Rs. 17,525 crore in 1988-89 to Rs. 20,790 crore in 1989-90.

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