The Hindu : Front Page : Plan will retard development: Achuthanandan

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Monday, Dec 05, 2005

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Plan will retard development: Achuthanandan

Special Correspondent

THIRUVANANTHAPURAM: Leader of the Opposition V.S. Achuthanandan on Sunday said that the 2006-07 annual Plan, finalised by the Cabinet on Saturday, will retard development in crucial sectors of the State economy.

In a statement here on Sunday, Mr. Achuthanandan said the Plan was also dependent heavily on external borrowings. As much as 29 per cent of the Plan outlay, equivalent to Rs.1,796 crores, comprised external borrowings. This would land the State in a major debt trap, he said.

Mr. Achuthanandan pointed out that only Rs.650 crores out of the Rs.6,210-crore total outlay had been earmarked as Central assistance. This would imply that Rs.3,764 crores would have to be found through internal resource mobilisation. The Finance Minister had already stated that there was a shortfall of Rs.700 crores in tax collection so far this year. Under the circumstances, the 2006-07 plan was likely to fall short of its goals, he added.

The Opposition leader also took exception to the poor devolution of funds for the local bodies. The LDF Government had devolved 35 per cent of the Plan funds to local bodies. But, in the 2006-07 Plan, only 22 per cent of the total outlay had been earmarked for the local bodies.

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