Bengal Plan outlay up 17%

The annual Plan outlay for West Bengal for 2013-14 was today fixed at Rs 30,314 crore, about 17 per cent more than the state’s outlay in the previous financial year.

The annual Plan size was approved at a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and West Bengal Chief Minister Mamata Banerjee here. The Plan size includes additional central assistance of Rs 6,645 crore.

For the financial year ended March, the Commission had approved a Plan size of Rs 25,910 crore. “We have got a 17 per cent increase in the outlay for 2013-14 over last year. We had proposed a 17 per cent hike,” Banerjee said.

Briefing the commission, West Bengal government officials said in 2012-13, the state’s revenue generation had hit a record high of Rs 32,000 crore, a rise of 30 per cent. Of this revenue, the Reserve Bank of India has deducted Rs 25,000 crore to meet the state’s obligatory interest payment.

The state has a debt pile of about Rs 2 lakh crore.

Banerjee has been demanding a moratorium on the interest on loans by the Centre to the state for three years (the loans stand at about Rs 20,000 crore a year). When asked, the West Bengal chief minister told reporters the Planning Commission wasn’t a place to discuss the debt issue.

On a query related to demands for a special package to Bihar, Banerjee said she couldn’t comment on a package to other states.

West Bengal government officials said their state had received investments of Rs 1.12 lakh crore since May 2011. These investments, they added, had the potential to generate 3,14,000 jobs.

During the meeting, Planning Commission officials said West Bengal’s image was that of a strong industrial centre. They added the commission was keen to extend support in improving the business regulatory environment, encouraging cluster approach in facilitating better use of technology and aiding skill-upgrade in the state. The state was also asked to encourage the garment industry, which had great export potential.

Ahluwalia said the commission would soon move a proposal to introduce flexibility in the implementation of flagship schemes to the Cabinet. He added states should suggest ways to implement these schemes.