The Annual Plan for Gujarat for the year 2005-06 was finalized at a meeting, here today, between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister of Gujarat, Shri Narendra Modi. Plan size for the current year was agreed at Rs. 11000 crores.
Shri Montek Singh Ahluwalia appreciated the efforts being made by the State to improve enrolment of girl child, encouraging private sector participation in power sector and optimizing water use through introduction of Water Regulatory Authority and Drip Irrigation. He said the State should give focused attention to addressing the problem of regional disparities and encourage self-help groups. It was pointed out that though Gujarat was leading in industrialization but all districts had not equally benefited. Efforts should be made to further widen urbanization to make economic gains reach all areas of the State.
In a presentation, the Planning Commission pointed out that emphasis should be given to the creation of employment opportunities for educated youth. The education system should be made more skill oriented and linkages with industries should be established. Emphasis should be more on delivery of health care in remote areas. The agriculture sector needs new initiatives. These should include reducing cost of production and controlling inefficient use of natural resources. In the power sector efforts should be intensified to bridge the gap between cost of production and average tariff.
The presentation pointed out that Gujarat was in fiscal stress with outstanding liabilities of the State Government at Rs.53,071 crore at 2003-04 RE. Salary, pension and interest payment take away over 91 per cent of the total revenue receipts.
Briefing the Commission on the performance of the State, the Chief Minister Shri Modi said that through prudent financial management, the State has achieved right balance of managing fiscal deficit without affecting overall development plans. The State was concerned about the high debt and interest burden and steps were being taken to reduce interest debt through debt swap. He pointed out that revenue deficit has come down substantially during the last four years. Shri Modi said despite natural calamities over the
last five years, the State has succeeded in increasing revenue receipts and controlling revenue expenditure through better tax compliance, revision of user charges, and reduction of subsidies and containment of expenditure. He said the cooperative movement has helped the State in achieving sustainable growth of agriculture development as well as trading and manufacturing activities.
During the next financial year highest priority will go to social services followed by irrigation and flood control energy, transport, agriculture and rural development. During the year focused attention will be given to development of infrastructure in urban areas. The year has already been declared as "urban year - 2005". Concerted efforts would be made to improve roads, public transport, water supply, sewerage system and on improving the quality of urban poor.
NNK : RK
(Release ID :7022)