Punjab's annual plan 2007-08 finalised at Rs 5,111 crore

New Delhi, May 31 (UNI) The annual plan of Punjab was today finalised at Rs 5,111 crore for fiscal 2007-08, which includes additional Central assistance of Rs 150 crore for projects linked to skill development programme and Rs 125 crore under the new ACA scheme for agriculture.

The plan size was finalised here at a meeting between the Punjab Chief Minister Parkash Singh Badal and Deputy Chairman Planning Commission Montek Singh Ahluwalia.

Mr Ahluwalia said the economy of Punjab has traditionally revolved around success in the agriculture sector but the present agriculture system was increasingly becoming ecologically and economically untenable.

Renovations of existing agriculture system, diversification of agriculture production patterns and agri-processing should acquire prominence in the government's planning process.

He said against a growth target of 6.4 per cent for the Tenth Plan, the state was likely to achieve an average growth rate of only 5.03 per cent. Per capita income of the state at constant prices has increased from Rs 15,071 in the year 2000-01 to Rs 17,864 in year 2006-07 from number one among the major states it has slipped down to number four.

He said that the state should work towards higher growth targets for the Eleventh Plan and identify means to fund higher plan.

Complimenting the state for achievements in the human resource development, Mr Ahluwalia said the state has done well in mid-day meal, Serva Shiksha Abhiyan and encouraging NGOs participation in development process.

The state government was advised to focus on development of infrastructure vital for creating investor friendly environment.

The state was advised to go for capacity addition in power sector. Skill up-gradation should also get focused.

He said after taking National Development Council's approval for approach to the agriculture sector, the Planning Commission will shortly begin regional consultations to identify area specific strategies for the Eleventh Plan.

He added the state would benefit from the Centre's programme to fund modernisation of existing irrigation system for which additional funds would be made available later this year under Accelerated Irrigation Benefit Programme (AIBP).

Briefing the Commission on state's performance, the Chief Minister said that the state was facing dismal financial situation.

The revenue receipts were not keeping pace with growing expenditure.

Tax revenue grew at mere 9 per cent against over 15 per cent increase in revenue expenditure during previous year. Part of consumption expenditure was being met through loans.

Mr Badal said the state aims at creating employment opportunities, improving quality of life by providing better health care facilities, sanitation, safe drinking water, education and greater access to food. The focus will be on improving state's performance on social indicators to match economic progress.

Panchayati Raj Institutions are being strengthened and their role improved not only in capital formation and asset management but in the entire process of planning.

The state government was encouraging private sector participation in the development, funding and operation of infrastructure oriented projects and emphasis was being aid on augmentation of urban infrastructure with Punjab Infrastructure Development Board support.

UNI