The Hindu : National : Corrective steps needed to boost growth rate, says Montek

Online edition of India's National Newspaper
Wednesday, Nov 10, 2004

National

National

Corrective steps needed to boost growth rate, says Montek

By Our Special Correspondent

KOLKATA, NOV. 9. Given the sluggish growth rates in the State Domestic Product of most States it was unlikely that the country would be able to meet the Tenth Plan's target of 8.2 per cent, the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, said here today.

The national growth rate in the current fiscal year was between 6 and 6.5 per cent and the economy was performing below expectations. The demand of many States for reduction in the interest rate on Central loans that would provide a relief on accumulated debt was being looked into, Mr. Ahluwalia said.

Mr. Ahluwalia, who held mid-term appraisal meetings of the Tenth Plan with the Chief Ministers of West Bengal, Orissa and Jharkhand and Bihar's Minister for Water Resources, said there was a need for "corrective steps across the country to increase the present growth rate." This called for a higher priority to the agricultural sector and to infrastructural development.

Mr. Ahluwalia admitted that it would not be possible to achieve the desired growth rate target in the next few years. "So let us keep trying to increase the rate and aim for eight per cent in the final year of the Tenth Plan." "There is the question of high non-plan expenditures in the States with the Fifth Pay Commission imposing a heavy burden and because of which the States were getting into a debt problem and resorting to increased borrowings.''

Buddhadeb's plea

The West Bengal Chief Minister, Buddhadeb Bhattacharjee, during his meeting with Mr. Ahluwalia, stressed the need for a master plan to improve the port and airport facilities in the State which was "looking eastward and at greater trade with Asian, particularly South Asian countries." He demanded the setting up of a world trade-cum-convention centre in West Bengal in the context of the State's international trade objectives.

The growth rate of West Bengal's economy was commendable, being much above the national average, Mr. Ahluwalia said. Mr. Bhattacharjee pointed out to him the need for "increasing the below-the-poverty level, reducing the prices of foodgrains available through the public distribution system and a Concrete central scheme aimed at generating employment in the urban areas."

Mr. Bhattacharjee also reiterated the need for greater funds for the development of the Sunderbans area and implementation of the master plan drawn up by the Centre for prevention of erosion along the Ganga and Padma rivers.

The Orissa Chief Minister, Navin Patnaik, said he had demanded a special category status for his State that would convert 90 per cent of the Central loans as grants. "It is a calamity-prone State and such a status is called for."

Printer friendly page
Send this article to Friends by E-Mail

National