26 states and UTs to spend rs 2.42 trillion
Dr. M.S. Kapadia
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
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
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
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
[May 19-25, 2008]