The Hindu : New Delhi News : State Plan size fixed at Rs. 26,053 crore

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Wednesday, Aug 13, 2008
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State Plan size fixed at Rs. 26,053 crore

Special Correspondent

The aim is to achieve growth rate of nine per cent during the 11th Plan period, says Chief Minister

State has received the third highest allocation
Focus to be on agriculture and allied activities

NEW DELHI: The Planning Commission on Tuesday announced that the annual Plan size for the State for 2008-09 has been fixed at Rs. 26,052.53 crore. This includes an additional Central assistance of Rs. 100 crore for projects of special interest to the State.

This was agreed upon at a meeting between Chief Minister B.S. Yeddyurappa and Montek Singh Ahluwalia, Deputy Chairman of Planning Commission.

Mr. Yeddyurappa said that the State had received the third highest allocation, after Andhra Pradesh and Uttar Pradesh. Andhra Pradesh has received Rs. 44,000 crore and Uttar Pradesh Rs. 35,000 crore.

Government for its fiscal performance, Mr. Ahluwalia said that its tax to GSDP (Gross State Domestic Product) was the highest in the country, its Plan realisation was good and it had made pioneering efforts in watershed development.

He said that efforts to improve infrastructure through public-private partnership should be encouraged, and asked the State to bring to the notice of the Commission problems being faced in the implementation of schemes sponsored by the Centre.

Mr. Ahluwalia pointed out that the incidence of anaemia and malnutrition among children was high. Efforts should be made to improve water quality in the affected villages, he said.

“Rainwater harvesting should be encouraged to address the problem in Bangalore”, he said.

The State, he said, was witnessing a structural transmission, with the share of the primary sector declining sharply. During the period from 1993-94 to 2003-04, the manufacturing and service sectors grew at 7.5 per cent and 10.61 per cent respectively, while the growth in the primary sector regressed to 0.6 per cent, he said.

‘Urban poverty high’

He pointed out that urban poverty was significantly higher than rural poverty in the State, and urged for steps to address the issue.

Briefing the Commission on the development strategy of the State, the Chief Minister said that it intended to achieve a growth rate of nine per cent during the 11th Plan period.

Fiscal deficit had been restricted to less than three per cent of GSDP and revenue surplus achieved every year since 2004-05, he said.

Focus would be on agriculture and allied activities to achieve a growth of over four per cent in the primary sector.

Mr. Yeddyurappa said that a blueprint for all-round development was being worked out. Pointing out that a skill commission was being step up to train the youth, he said that the Government was committed to creating one million employment opportunities in five years.

He urged that the Cauvery river basin irrigation projects be included in the Prime Minister’s package for distressed farmers without insisting on clearance from the Cauvery River Water Dispute Tribunal.

He also sought special Central assistance of Rs. 1,500 crore for infrastructure improvement in Bangalore, reimbursement of the Rs. 1,880 crore spent on writing off of cooperative debts of farmers in 2006-07 and 2007-08, and support for the 2,000 MW thermal power project being set up in Chhattisgarh by ensuring adequate coal linkage.

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