K'taka growth rate put at eight per cent for 2007-11

Bangalore, July 26 (UNI) The Medium Term Fiscal Plan (MTFP) for 2007-11 presented in the Karnataka Assembly today forecast an eight per cent real growth with the inflation rate pegged around five per cent.

The MTFP presented by Deputy Chief Minister B S Yediyurappa projected a positive growth mainly due to growth trends that was well-entrenched in the manufacturing and services sector, though the susceptibility of agriculture sector due to vagaries of nature, declining productivity and performance of agriculture sector was a cause of concern.

Reviewing the growth since the turn of the decade, the report said the services and the industry sector, whose contribution to the gross state domestic product was 47.40 per cent and 24.85 per cent respectively in 1999-2000, contributed 54.66 per cent and 27.14 per cent respectively in 2006-07.

During the same period, the contribution from the agriculture sector slumped by almost ten per cent from 27.75 per cent to 18.20 per cent, it added.

The MTFP said the nominal Gross State Domestic Product had almost doubled during the last seven years with the state benefitted by the overall buoyant economic situation in the country. The upbeat mood of the manufacturing and services sectors was well reflected in the growth in figures of investment and also performance of capital market.

The mid-term fiscal plan said though there were initial concerns over the rising inflationary pressures and the possible impact on growth in 2006-07, due to fiscal and monetary interventions by the Centre, the inflation rate had come under control.

UNI