NEW DELHI: The Planning Commission on Wednesday approved a plan outlay of Rs.13,000 crore for Bihar for 2008-09, which includes additional Central assistance of Rs.100 crore for “projects of special importance” to the State.
This decision was taken at a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Bihar Chief Minister Nitish Kumar here.
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 based on performance, can be included in the Annual Plan for the year 2008-09, taking this to an effective plan size of Rs.13,500 crore.
Mr. Ahluwalia complimented the Bihar Government on the major initiatives taken towards administrative reforms, decentralisation and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government, which has lead to acceleration in plan expenditure.
Efforts appreciated
Appreciating efforts being made for improving performance in the sectors of education, health and horticulture, Mr. Ahluwalia said the Commission was concerned about the problem being faced by the States in executing centrally-sponsored schemes and was looking forward to suggestions aimed at improving implementation by making guidelines flexible wherever necessary.
Attention was drawn to the industrial policy launched by the State Government in 2006 and it was pointed out that the policy skewed towards dependence on providing fiscal benefits in the form of subsidy and concessions for attracting investments. This was contrary to the policies being pursued by the Central Government which emphasises for creation of enabling conditions and removal of impediments.
Bihar Chief Minister Nitish Kumar said 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.
Next year, 31 per cent of the development funds would be earmarked for this sector. Irrigation and flood control will also get focused attention with over 13 per cent and 10.93 per cent allocations, he added.
Public funding
The State Government is working to raise the standards of living to the national average and beyond through inclusive growth with rural bias and gender focus, he said, and added that because of large gap in development, the State Government will have to depend more on public funding. The Centre should evolve district specific approach on programmes like National Rural Employment Guarantee Programme, Mr. Kumar added.
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