The Hindu Business Line : Maharashtra annual Plan fixed at Rs 11,000 cr

The Maharashtra Chief Minister, Mr Vilas Rao Deshmukh, and the Deputy Chief Minister, Mr R.R. Patil, calling on the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, in the Capital on Thursday.— Ramesh Sharma

New Delhi , March 3

THE annual Plan of Maharashtra for the next fiscal has been determined at Rs 11,000 crore, inclusive of additional Central assistance of Rs 160 crore for completion of important irrigation projects.

This has been decided here at a meeting between the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, and the State Chief Minister, Mr Vilasrao Deshmukh.

In his initial remarks, while complimenting the State for sound performance, the Deputy Chairman of the Plan panel said the social indicators are also better than the national average with birth rates at 20.3 and death rate of 7.3 against the national average of 25and 8.1 respectively.

He said the State was well poised to score total fertility rate of 2.1 by the end of the Tenth Plan.

The attention of the State was drawn to substantial slip-up in Plan expenditure due to increase in non-plan expenditure and shortfall in resources mobilisation. It was pointed out that the State is facing severe financial stress with fiscal deficit at 4 per cent in 2001-02 and revenue deficit at 3.08 per cent during the same period.

The Planning Commission Member, Mr Mungekar, said the State should continue to lead in the economic development and live up to its reputation. The development pattern has to be reviewed to reduce regional imbalance and attention should be bestowed on fostering fisheries and tourism.

The Planning Commission agreed to take up with Finance Ministry the issue of discriminatory rate of interest being charged on borrowings from the National Small Savings Fund. The State Government said that it was required to pay 9.5 per cent interest rate, while the Centre was paying much less.

The Chief Minister of Maharashtra said that the economy of the State has been growing at impressive rates after the setback it suffered in 2000-01. He said the shortfall in Plan expenditure was due to massive expenditure of Rs 1,499 crore on relief works in districts hit by unprecedented drought.

He sought Central assistance in addressing slum problem of Mumbai and said that about Rs 2,000 crore would be required additionally to provide civic amenities and shelter assistance to slums.

Under the slum rehabilitation plan 26,610 tenements have already been constructed while another 11,000 are under various stages of completion.

He said the State was working to remove the regional backlog and has been directed by the Governor to allot Rs 8,566 crore for removal of regional imbalance.

He said a provision of Rs 1,400 crore has been made but meeting the entire requirement was beyond budgetary capacity of the State Government.

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