Punjab Annual Plan for 2010-11 pegged at Rs 9,150 cr

The Annual Plan 2010-11 for Punjab has been finalised at Rs 9,150 crore as against Rs 8,600 crore for 2009-10, a five per cent rise. By contrast, the annual plan for Haryana was finalised at Rs 18,260 crore, a rise of 82 per cent over last year.

The plan was finalised in a meeting yesterday between Deputy Chairman Planning Commission Montek Singh Ahluwalia and Punjab Chief Minister Parkash Singh Badal. The outlay includes an additional Central assistance of Rs 333 crore earmarked for the priority projects, with 30 per cent as the central grant component.

A spokesman said, the budgeted plan was proposed at Rs 4,434 crore while the remaining Rs 4,716 crore would form the extra-budgetary component. The total resources projected for financing the Rs 9,150 crore annual plan were estimated to be Rs 9,136 crore.

Priority had been accorded to the energy sector for which 36 per cent of the total plan outlay had been earmarked. Major share of this would be spent on power generation, distribution and up-gradation of transmission.

Social services, with 26 per cent of the outlay was the second priority sector with a thrust on pensions to old and other sections of the society, skill development and employment generation, rural water supply schemes, urban development and welfare of weaker sections.

Road transport sector with 16 per cent of the plan outlay was also a thrust area with major funding envisaged on account of the World Bank and Nabard projects.

Outlining the additional resource mobilisation, the chief minister said the state government would raise additional resources of about Rs 1,200 crore in 2010-11 mainly on account of measures announced towards the end of the last financial year.

These include 10 per cent surcharge on VAT (Rs 600 crore), increase in VAT from four per cent to five per cent (Rs 100 crore), imposition of electricity charges on agriculture power (Rs 500 crore), rationalisation of power subsidy for SC and BPL families (Rs 120 crore), imposition of irrigation cess (Rs 120 crore) etc.

The government is likely to raise more resources in the current year. The electricity duty had been enhanced by three per cent, which would give an additional Rs 270 crore. The state also expects to augment VAT, excise and stamp duty collections on account of better compliance.