Karnataka's Plan performance has been of a high order and the size is also getting larger every year, although the percentage of central assistance to the State plan has been declining over the years, said Dr V.S. Acharya, Minister for Higher Education, Planning and Statistics, IT & BT.
Speaking at the regional consultation of the Planning Commission with Southern States on the approach paper to the 12th Five Year Plan (2012-17), Dr Acharya said, “as against the 11th Plan allocation of Rs 1,01,664 crore, the anticipated expenditure of the state is likely to be Rs 1,14,005 crore, translating into an achievement of 112 per cent.”
The State is known as forward looking progressive and strong development oriented and has registered an average growth rate of about 7.5 per cent of the GSDP for the past few years.
“With this achievement, the state still continues to be in the league of middle income states. This is due to the existence of considerable intra-regional disparities,” explained Dr Acharya.
The State is implementing a special development plan for those regions, spread over eight years, based on the recommendation of the high power committee for redressal of regional imbalance.
“To address this key issue of regional imbalance, the State is providing additional allocation of Rs 16,000 crore over and above the normal allocation to be identified backward taluks to bring them on par with the developed taluks,” said Dr Acharya.
Power
The Karnataka Chief Minister, Mr B.S. Yeddyurappa, pleaded with the Planning Commission that the State is undergoing severe power crisis and load shortages. The State purchased as much as 1,300 MW of power daily during 2010-11 to meet the deficit.
“The State is engaged in strenuous attempts to promote new power projects in the public and private sector. Our intention is to add a minimum of 9,500 MW in the public sector during the 12th Plan period,” Mr Yeddyurappa said.
“To address this issue the first priority in the allocation of coal blocks should be given to power generation companies. Some of the power generation projects are stalled for want of fuel coal linkages/coal blocks/environmental clearances. Guidelines for time bound clearance may be prescribed for resolving of the issues related to environment. Planning Commission's intervention is sought in this,” he added.
GST
“The uncertainties arising from the impact of GST on the states' resources for the plan financing are a major concern. The assurance by the Centre regarding compensation for a limited period is welcome,” the Chief Minister said.
“However, the finally selected GST rate should not compromise ability of the States like Karnataka with high tax effort. Further, the rate should be treated as the floor rate without limiting autonomy of the States,” he added.