The Hindu Business Line : Himachal Plan size fixed at Rs 1,600 cr

THE annual Plan of Himachal Pradesh for 2005-06 has been fixed at Rs 1,600 crore, inclusive of additional Central assistance and special Plan assistance of Rs 400 crore. It has also been agreed to extend additional one-time market borrowings of Rs 32.71 crore to the State.

The Plan size was arrived at a meeting here today between the Planning Commission Deputy Chairman, Dr Montek Singh Ahluwalia, and the Chief Minister, Mr Virbhadra Singh.Dr Ahluwalia said the State has fiscal problems and high debt burden and it should improve resources and compress non-Plan expenditure and also make best use of the award of the Twelfth Finance Commission.

He also assured that attention of the Prime Minister would be drawn to the demand made by several States for compensation for forest protection. He said for this purpose the Committee on Energy Policy of the Prime Minister would go into the issue of levy on electricity generation.

He said the Himachal Pradesh Development Report released today would help in working out a roadmap for accelerating socio-economic development and tapping the natural endowment potential of the hilly State.

Dr Syeda Hameed, Member, Planning Commission, under whose supervision the report was made, drew attention to increasing evidence of AIDS, widening sex ratio and high incidence of tuberculosis among women in the State.

Briefing the commission on the performance of the State, Mr Singh said that efforts were on to improve the fiscal position. He added that a public service tariff board to operationalise cost recovery was in the offing. It would cover education, health, water supply and irrigation sectors.

He said the tax fillip by the Centre for setting up industrial units in the State has helped it in reviving industry and investments of Rs 8,000 crore were coming up.

Mr Singh added that wide-ranging revenue expenditure compression measures were in place and the Government was committed to follow the path of fiscal reforms.

A legislation on fiscal responsibility and budget management would be introduced shortly.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page