The Hindu Business Line : Punjab Annual Plan fixed at Rs 5,111 crore

THE PUNJAB Chief Minister, Mr Parkash Singh Badal, calling on the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, on the annual Budget allocation in the Capital on Thursday. — Kamal Narang

New Delhi May 31 The Annual Plan size of Punjab for the current fiscal has been pegged at Rs 5,111 crore, inclusive of additional central assistance (ACA) of Rs 150 crore for projects linked to skill development programme and another Rs 125 crore under the new ACA scheme for agriculture recently endorsed by the National Development Council.

The Plan size for Punjab was decided here at a meeting between the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, and the Chief Minister, Mr Parkash Singh Badal, on Thursday.

In his initial remarks, Mr Ahluwalia said the economy of Punjab was traditionally centred around success scored in the farm sector but the extant agriculture practice was increasingly becoming ecologically and economically unsustainable. Renovations of extant agriculture system, diversification of agriculture production patterns and agro-processing should acquire importance in the State's planning process, he said.

Mr Ahluwalia said against a growth target of 6.4 per cent for the Tenth Plan (2002-07), the State was likely to achieve an average growth rate of only 5.03 per cent.

Per capita income of the State at constant prices has increased from Rs 15,071 in 2000-01 to Rs 17,864 in 2006-07 but the State has slipped from number one to fourth slot.

He lauded the State for achievements in the human resource development. He urged Punjab to focus on development of infrastructure vital for fostering investor-friendly milieu. Capacity addition in power sector and skill upgradation should also receive concentrated attention from the State, he said, adding that it would benefit from the Centre's programme to fund modernisation of existing irrigation system for which additional funds would be available later this year under the Accelerated Irrigation Benefit Programme (AIPB).

Dismal situation

Briefing the Commission on the State's performance, Mr Badal said Punjab was facing dismal financial situation, as the revenue receipts were not keeping pace with mounting expenditure. Tax revenue grew at mere 9 per cent against over 15 per cent increase in revenue expenditure during the previous year, he said, adding "part of consumption expenditure was being met through loans".

He said the State aims at creating employment opportunities, improving quality of life by providing better health care amenities, sanitation, safe drinking water and greater access to food, besides education.

The thrust would be on improving the State's performance on social indicators to match economic progress, he said.

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