Planning Commission makes state kitties richer by 10%

Even as finance minister P Chidambaram stated that most of the states are now cash-rich, the Planning Commission gave a 10% increase to the plan size of most of the states for 2008-09. However, the panel has urged the states to maintain fiscal prudence.

Majority of the state governments, including those of West Bengal, Kerala and Bihar, informed the commission that a big chunk of the plan money would be spent for the development of priority sectors like education, health, power and agriculture.

Kerala?s kitty got richer by over 10% with an annual plan size of Rs 7,700 crore for 2008-2009 over last fiscal?s Rs 6,950 crore. The plan outlay included an additional central assistance of Rs100 crores for projects of special importance to the state. The commission complimented the state for its efforts in maintaining fiscal discipline while improving plan performance.

Kerala chief minister V S Achuthanandan said that the fiscal squeeze imposed during the Tenth Plan had a detrimental effect on all development sectors. This had particularly adverse impact on the social sectors, including education and health. The fiscal crisis had crippled the ability of the state to cope with the impact of the agrarian crisis, and more generally of the crisis of petty production.

Impressed with the terror-hit state?s capability to turn around the economy, the commission gave a decent fund of Rs 4,500 crore to Jammu and Kashmir for the current fiscal.

Planning Commission deputy chairman Montek Singh Ahluwalia lauded the state government for its efforts in managing a positive trend in the growth rate for past two years. The state?s plan expenditure has grown by 150% as compared to 2001-02. During the same period development expenditure has gone up by a whopping 276% while plan salaries took a dip of 31%. Tourist arrival gone up to 6.05 lakh in 2005 against 0.73 lakh in 2001.

Chief minister of the state Ghulam Nabi Azad said that his government has embarked on a large plan to meet the target of 8% growth rate during 11th Plan period.

During the 11th Plan the state government would give priority to allocate public expenditure in sectors having high employment capacity, he said. Restructuring of cooperative banks and downsizing of PSUs would be initiated shortly, he added. Azad said the state had registered an employment growth of 6.8% in economic enterprises which was highest in the country. In line with the national priorities the state emphasises on proper implementation of flagship programmes including Sarva Shiksha Abhiyan, ARWSP, NRHM and JNNURM.

Another big buck earner was West Bengal with a plan size of Rs 11,603 crores. This included an additional central assistance of Rs 150 crores for projects of special importance to the state.

Chief minister Budhadeb Bhattacharya said that the state was pursuing employment oriented growth strategy. Emphasis would continue developing agriculture, small & micro enterprises (SMEs) and development of physical and social infrastructure. He said Kisan Credit Card facility would be extended to every agriculture households. Central support to vocational training and minority welfare programmes would be increased.

He said the state was working on improving quality of life in Sundarban region and requested the commission to work out a separate master plan for the region. Support of the commission was also sought for encouraging cluster concept for small & micro enterprises. Thrust areas in the current financial year would include inclusive growth, bridging the divide, human development, sustainable agriculture growth, infrastructure build up for industrialisation, intensifying industrial promotion and skill development.

Tamil Nadu managed to get an increase of over 14% with the plan size for 2008-09 being fixed at Rs 16,000 crore over last fiscal?s Rs 14,000 crore

The plan outlay for Maharashtra was finalised at Rs 25,000 crores with an additional central assistance of Rs 250 crores for projects of special interest to the state like infrastructure development and social sector programmes.

The state would focus more on issues like health, nutrition, education and economic growth of the population. Balanced regional growth would be promoted and focused attention will be given to further increase agriculture production, chief minister Vilasrao Deshmukh said adding, to improve socio-economic indicators, programmes like NRHM, SSA, NREGS, Bharat Nirman, JNNURM, BRGF and ARWSP would be vigorously implemented.

Other thrust areas would include poverty alleviation, employment generation and implementation of Minimum Needs Programme, Tribal Sub-plan, Special Component Plan and Programmes for Removal of Regional Imbalances.

Aimed at helping Delhi create infrastructure to host the forthcoming Commonwealth Games, the commission gave the national capital a hike of around 11% with a annual plan size of Rs 10,000 crore against last fiscal?s Rs 9,000 crores. The state?s focus would be on improving urban infrastructure and public transport facilities besides looking at water and power problems.