Young finance minister sees Punjab's growth rate decelerating

Chandigarh, June 20 (UNI) Expressing serious concern at Punjab's economy, which had been growing at a rate lower than the national economy, Finance Minister Manpreet Singh Badal today pointed that this was mainly due to the slow growth in agriculture and allied sectors which grew at an average rate of 2.21 per cent during the period 2002-03 to 2006-07.

"As per projections of the Planning Commission, for the Eleventh Five Year Plan (2007-12), Punjab will be the lowest growing Ssate in the country", he said while presenting his maiden budget for the remaining nine months of the current financial year in the state Vidhan Sabha here.

The deceleration in the rate of growth, if allowed to continue, will adversely affect the income and employment levels in the state which is a cause of severe concern, he said.

He elaborated that as per quick estimates, overall economy of Punjab had shown a growth rate of 4.65 percent during 2005-06 as against 4.95 percent in 2004-05 (provisional). The Gross State Domestic Product (GSDP) at constant prices (1999-2000) had risen from Rs 81,081 crore to Rs 84,851 crore during the year 2005-06 over the previous year clocking a growth rate of 4.65 percent.

"This mirrors the state's economy gradually moving southwards", the young Finance Minister said while dishing out certain verses from various Urdu poets.

The growth rate in the primary sector which comprises of agriculture and allied sectors was 1.86 percent in 2005-06 as compared to 2.17 per cent in 2004-05. The negative growth in the primary sector is mainly because of stagnant agriculture, he pointed out.

The secondary sector which encompasses manufacturing, construction and power sector had grown by 5.65 per cent in 2005-06 as compared to 7.88 per cent in 2004-05, he said.

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