The Hindu Business Line : Bihar annual Plan fixed at Rs 13,000 cr

New Delhi, Jan 30 The annual Plan of Bihar for the next fiscal 2008-09 has been fixed at Rs 13,000 crore inclusive of additional Central Assistance of Rs 100 crore of projects of special interest to the state.

This was agreed here at a meeting between the Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia, and the Chief Minister of Bihar, Mr Nitish Kumar.

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 to Bihar could be included in the Annual Plan for 2008-09, taking this to an effective Plan size of Rs 13,500 crore.

In his initial remarks, Mr Ahluwalia complimented the State Government for the major initiatives taken in administrative reforms, decentralisation and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government.

He said this has led to enhanced Plan expenditure.

He also appreciated efforts being made for improving performance in the sectors of education, health and horticulture.

Mr Ahluwalia said that 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 which was 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 on the creation of enabling conditions and removal of impediments. The State Government should identify select industries/sectors which have potential endowment in Bihar in place of conventional approach of giving emphasis to sectors as a whole. Attention was also drawn to high dependence on public sector funding and it was pointed out that efforts should be made to encourage private sector funding in development programmes.

Mr Nitish Kumar said that 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 said 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. Reform aimed at promoting inclusiveness includes setting up of Land Reforms Commission, State Mahadalit Commission, Commission for Extremely Backward Classes and State Minority Commission. He said under the NREGS, 65.4 lakh job cards have been issued, employment provided to 23.51 lakh and 25,651 works completed. Over 2,26,000 houses have been completed under Indira Awas Yojana.

He said because of large gap in development, the State Government will have to depend more on public funding. He also said that Centre should evolve district specific approach on programmes like National Rural Employment Guarantee Programme to ensure even development of the various deficit districts in the State.