Rs 16,000 cr annual Plan for Gujarat

New Delhi, Apr 2 (UNI) The annual plan for Gujarat for 2007-08 was finalised at Rs 16,000 crore at a meeting here today between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Chief Minister Narendra Modi.

The outlay, includes an additional Central assistance of Rs 90 crore for projects of special importance to the State.

Mr Ahluwalia complimented the State for economic reforms and working towards creating investor-friendly environment. He said the State government had successfully introduced public-private partnership in the social sector.

While appreciating the progress recorded in human development, it was pointed out that more focused attention was needed to address problems of malnutrition and high gender differential in education.

He said fiscal performance as well as plan realisation during the Tenth Plan period was good. The State government had 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 had also achieved fiscal deficit of 2.51 per cent for 2006-07. Achievements in the agriculture sector despite natural calamities were appreciated.

Mr Ahluwalia said the Commission intended to hold regional consultation on the Eleventh Plan shortly so as to discuss in detail priorities for the Plan with the State Governments. For better implementation of the Central programmes, he invited suggestions from the State Governments, especially where guidelines were coming in the way of implementation.

Briefing the Commission on Plan performance, Mr Modi said the State economy had grown at a rate of 10.6 per cent for the last four years.

From a revenue deficit of Rs 6,731.54 crore in 2001-02, it has revenue surplus of Rs 1,802.85 crores in 2006-07, he said.

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 13,276 crore in 2006-07 from Rs 25,862 crore 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 crore has been granted for the current year in taxes which includes electricity relief of Rs 223 crore. Conscious efforts are being made to correct regional imbalance in developmental works by appropriately focusing on social sectors. Top priority has been given to social sector by allocating Rs 6,265.05 crore showing an increase of over 41 per cent against the provision of Rs 4,426.24 crore last year,'' Mr Modi added.

He said the State government was aiming at realising physical infrastructure comparable to Singapore and Japan and social infrastructure as good as in Australia.

UNI