Planning commission approves Rs16, 000 crore plan of Gujarat

[Nilesh Patel]

Planning commission approves Rs16, 000 crore plan of Gujarat

The planning commission has approved annual plan of Rs 16,000 crore for Gujarat at a meeting Gujarat Chief Minister Narendra Modi had with the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia. This includes additional Central assistance of Rs.90 crores for projects of special importance to the State.  The Deputy Chairman, Planning Commission, complimented the State for economic reforms and working towards creating investor friendly environment. He said the State government has successfully introduced public - private partnership in social sector. While appreciating the progress recorded in human development, it was pointed out that more focused attention was needed to address problem of malnutrition and high gender differential in education.   He said fiscal performance as well as plan realization during Tenth Plan period was good. The State government has spent more than budget estimates in the last fiscal and hopefully it would repeat performance during current financial year. Besides being revenue surplus for two consecutive years, it has also achieved fiscal deficit of 2.51 per cent for 2006-07.  Ahluwalia said that the Commission intends holding regional consultation on Eleventh Plan shortly so as to discuss in detail priorities for the Plan with State Governments. For better implementation of Central programmes, he invited suggestions from State Governments especially where guidelines were coming in the way of implementation. Briefing the Commission on Plan performance, Chief Minister Narendra Modi said the State economy has grown at a rate of 10.6 per cent for the last four years. From a revenue deficit of Rs.6731.54 crores in 2001-02, it has revenue surplus of Rs.1802.85 crores in 2006-07.FRBM target of eliminating revenue deficit by 2007-08 has been met two years ahead of schedule. Revenue receipts have grown by 21.14 per cent and State\'s own taxes increased by 17.8 per cent while non-developmental expenditure came down to Rs.13276 crores in 2006-07 from Rs.25862 crores in 2001-02. He said State economy had become strong, progressive, dynamic and a source of sustenance for the common man. A relief of Rs.400 crores has been granted for the current year in taxes which includes electricity relief of Rs.223 crores. Conscious efforts are being made to correct regional imbalance in development by appropriately focusing on social sectors. Top priority has been given to social sector by allocating Rs.6265.05 crores showing an increase of over 41 per cent against the provision of Rs.4426.24 crores of last year.  He said the State government is aiming at realizing physical infrastructure comparable to Singapore and Japan and social infrastructure as good as in Australia. For Manufacturing sector target is China and for service sector it would like to be as efficient as America.