Annual plan for Andhra Pradesh set at Rs 8,378 crore

Our Economic Bureau

New Delhi, Aug 10: The annual plan for Andhra Pradesh (AP) for 2001-02 has been finalised at Rs 8,378 crore at a meeting between Planning Commission chairman KC Pant and AP chief minister Chandrababu Naidu on Friday.

Andhra Pradesh chief minister Chandrababu Naidu offering sweets to Planning Commission deputy chairman KC Pant at Yojna Bhavan in New Delhi on Friday

Complimenting the state for plan performance during the 9th Plan, Mr Pant said AP was likely to exceed the Plan targets fixed for the 9th Plan. It has already achieved 82 per cent of plan outlay targets which is highest among all states.

He said initiatives like single window clearance, electronic governance, water user associations and other people-centered measures were steps in the right direction. The state has successfully attracted private investment in infrastructure and health care.

Mr Pant also appreciated Mr Naidu’s efforts making remarkable achievement in the field of information technology and knowledge-based sector. Attention of the state was drawn to the financial crisis due to growing debt resultant of rising public expenditure on subsidies, salaries and pensions. It was suggested to the state to pursue implementation of fiscal reforms.

It was pointed out that average annual growth rate (Gross State Domestic Product) and per capita state domestic product were lower than all-India average.

Lower position of the state in the literacy index and wide gap between urban and rural literacy were a cause of concern and that AP should take immediate steps to reduce the burden on its exchequer caused by losses incurred by PSUs.