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Industry & Economy - Economy
States - Gujarat
Gujarat annual Plan pegged at Rs 21,000 cr

New pension scheme will be introduced soon: Modi

— V. Sudershan

Mr Narendra Modi, Gujarat Chief Minister, with the State Finance Minister, Mr Vajubhai Vala, calling on Mr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, to discuss the annual Plan in New Delhi on Tuesday.

Our Bureau

New Delhi, April 1 The Annual Plan of Gujarat for 2008-09 has been fixed at Rs 21,000 crore inclusive of additional Central Assistance of Rs 130 crore for projects of particular interest to the State. This was finalised at a meeting, here today, between the Deputy Chairman Planning Commission, Mr Montek Singh Ahluwalia, and the Chief Minister of Gujarat, Mr Narendra Modi.

In his preliminary observations, Mr Ahluwalia complimented the State Government for good performance as both fiscal and growth performance was impressive. The State’s growth rate of 10.4 per cent has been achieved in the Tenth Plan which is better than the national average. The growth rate target for the State has been fixed at 11.2 per cent which is achievable going by the current trends.

The State Government was also complimented for encouraging public-private partnership in development of social infrastructure. Efforts to improve human development index and rural development strategy were also appreciated.

The Commission also took note of the State Government’s effort to upgrade health and education levels to global standards. Efforts to improve implementation of flagship programme was also appreciated.

Attention was drawn to the deterioration noticed on nutrition front and decline in the enrolment in higher education.

The State Government was advised to draw action plan for meeting shortage for specialists and improving awareness about HIV among women. It was pointed out that the State continues to be the premier destination for industrial investment and first application for petro-chemical region has come from Gujarat.

Briefing the Commission on strategy for development, Mr Modi said that focus would be on making development more inclusive. Human development index would be improved through investment in human capital, skill development and employment, empowerment through education and focus on unorganised sector.

Fiscal performance

Specific programmes would be initiated for deprived sections to make growth more inclusive. On fiscal performance, he said fiscal consolidation and institutional reforms had been successfully carried out. New pension scheme would be introduced shortly and consolidated sinking fund has been created to take care of future liabilities.

He said the Central Government should make schemes more flexible so as to enable State Governments to take full advantage and wanted more flexibility in rural development schemes.

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