State Plans for 2008-09

The annual plans for 2008-09 of 26 states and union territories were finalised in consultation with the Planning Commission till May 9, 2008, according to available indications. The aggregate outlay of these states and UTs would amount to Rs 2.42 trillion in the second year of the 11th Plan, showing an increase of 26 per cent over the first year that saw a 29 per cent YoY rise.
The broad allocation strategy of the states and UTs is as under:
Andhra Pradesh: The annual plan for the state was agreed at Rs 44,000 crore. The state was complimented for focused attention to agriculture and allied areas. Fund flow to irrigation sector has gone up substantially during the last four years and state has recorded impressive increase in the yield. Substantial increase in public expenditure has catalysed private investment and brought about a buoyant turn in state economy.
Maharashtra (outlay: Rs 25,000 crore): The state is to achieve growth rate above national target for the 11th Plan. Against 3.8 per cent growth rate in the 9th Plan, the state had recorded growth of 8.2 per cent in the 10th Plan. Improving urban infrastructure, housing, irrigation and agriculture should be given priority during the 11th Plan. The state was also advised to revisit rent control act as it could affect plans to make Mumbai an international financial centre. To improve socio-economic indicators programmes like NRHM, SSA, NREGS, Bharat Nirman, JNNURM, BRGF and ARWSP would be vigorously implemented.
Gujarat (outlay: Rs 21,000 crore): The 11th Plan growth target for the state has been fixed at 11.2 per cent. The state economy had achieved 10.4 per cent growth during the 10th Plan. The state focus in the coming years would be on making development more inclusive.
Tamil Nadu: The annual plan has been agreed at Rs 16,000 crore, indicating a 14 per cent step up over that for 2007-08. The state has an outlay of Rs 80,000 crore for the 11th Plan period. Agriculture would get top priority. The state has requested Planning Commission to extend full support to the proposed Chennai Metro rail project by providing incentives and the importance accorded to the Delhi project.
Madhya Pradesh (outlay: Rs 14,183 crore): Thrust areas of development policy would be eliminating hunger, malnutrition and abject poverty. A number of new initiatives have been taken to improve social protection. The state government is working to facilitate investments and create more physical and social infrastructure. Efforts are on to reduce dependence on agriculture in rural areas and for this purpose allied areas are being given priority.
Rajasthan (outlay: Rs 14,000 crore): The state was improving emphasis on social sector while maintaining fiscal discipline. Private sector participation in social sector including health and education was being encouraged.
Bihar: The Plan outlay was agreed at Rs 13,000 crore (+32 per cent). It was also agreed that on the basis of mid-year performance and absorptive capacities, an additional outlay of Rs 500 crore in the special package of assistance to the state based on performance can be included in the Annual Plan, taking this to an effective plan size of Rs 13,500 crore. A special plan has been formulated to bring about improvement in sectors like power, road connectivity, irrigation, forestry and watershed development. Social sector is being given top priority. 31 per cent of the development funds would be earmarked for this sector. Irrigation and flood control will also get focused attention.
West Bengal (outlay: Rs 11,602 crore): The state government was pursuing employment oriented growth strategy. Emphasis would continue on focused attention to agriculture, small & micro enterprises (SMEs) and development of physical and social infrastructure.
Delhi: The Planning Commission has recommended the annual plan size of National Capital Territory of Delhi at Rs 10,000 crore and asked the state government to give an increased impetus to Yamuna clean-up action plan. The state government would have to stress more on sewerage improvement and enter into long-term power purchase agreements, accelerate the pace of infrastructure development and increase thrust on social sectors. A lot of emphasis was also laid on strengthening the basic infrastructure before the 2010 Commonwealth Games.
Chhattisgarh: the plan outlay has been hiked up by 29 per cent to Rs 9,600 crore, which includes additional Central assistance of Rs.50 crore for establishing and strengthening of infrastructure for collection and marketing of minor forest produce. The state was asked to have more detailed district level planning to ensure that benefits of planning reach all sections of population. All villages and hamlets would have access to safe drinking water by March, 2009. Pipe water would be supplied to remaining 32 towns shortly.
Jharkhand (outlay: Rs 8,015 crore): The state government had embarked on overhauling the processes and systems with a view to make delivery systems more effective, transparent, responsive and cost effective. ICT tools and new delivery models including PPP were being encouraged. Over 38 per cent of outlay is being ear-marked to social service which includes 13 per cent to education.
Kerala (outlay: Rs 7,700 crore): The chief minister said that the fiscal squeeze imposed during the 10th Plan had detrimental effects on all development sectors. This had particularly adverse impact on the social sectors, including education and health. Support to agriculture, education, health, social welfare and security, traditional and small scale industries are being maximised without compromising promotion of sun-rise sectors like IT, modern industries and tourism.
Orissa: The plan outlay has been hiked by 47 per cent to Rs 7,500 crore. Rs 100 crore special grant was given for improving the stretch of highway between Vijaywada and Ranchi. The state would aim at a growth rate of over 9 per cent during the 11th Plan to reduce poverty by 15 percentage points. For inclusive, broad-based & sustainable growth, agriculture and allied sectors would be given priority. The state has achieved an annual growth rate of 8.59 per cent during the 10th Plan period against the target of 6.2 per cent. During next financial year 60,000 ha of additional land will be irrigated.
Haryana (outlay: Rs 6,650 crore): During the 10th Plan period, the state achieved growth of 9 per cent against the target of 7.9 per cent. Accordingly, an ambitious target of 11 per cent has been fixed for the 11th Plan. Besides additional resource mobilization measures, efforts were on to further improve social sector performance and number of initiatives has been taken to benefit those who have not fully realized fruits of development.
Punjab (outlay: Rs 6,210 crore): The state would focus on removing intra-regional imbalances, generation of productive employment, improving quality of life by providing better health care facilities, sanitation, safe drinking water, education and greater access to food. High priority will be given to energy sector and social services.
Assam (outlay: Rs 5,011 crore): The state has achieved an industrial growth rate of 8.02 per cent in the 10th Plan and efforts are being made to encourage growth of small and cottage industry during the 11th Plan period. The chief minister asked the Planning Commission to modify the power policy so that surplus power generated through the mega projects in the North-East Region should be first made available on priority to deficit states in the region before being evacuated to other states.
Uttarakhand: The annual plan size was agreed at Rs 4,775 crore (+9 per cent). This included additional Central assistance of Rs 300 crore for infrastructure needed for Kumbh Mela and SAF Winter Games and other projects of special interest to the state. The state emphasis would continue on social sector. Over 37 per cent of plan outlay would be earmarked for social services. Efforts are on to further accelerate development of infrastructure and for this purpose four projects are being executed through external aid. These would be in roads and bridges, urban infrastructure, power and tourism development.
Others: Arunachal Pradesh (outlay: Rs 2,065 crore), Puducherry (outlay: Rs 1,750 crore), Manipur (outlay: Rs 1,660 crore), Himachal Pradesh (outlay: Rs 2,400 crore), Sikkim (outlay: Rs 852 crore), Jammu & Kashmir (outlay: Rs 4,500 crore), Goa (outlay: Rs 1,738 crore), Nagaland (outlay: Rs 1,200 crore) and Mizoram (outlay: Rs 1,000 core) also got their plans approved by the Planning Commission.