Karnataka Plan Outlay Pegged At Rs 23,400 Cr

Karnatakas plan outlay for the ninth plan was yesterday pegged at Rs 23,400 crore, up 40 per cent from the Rs 16,817.15 crore expenditure incurred during the eighth plan by the state.

The plan size, decided here at a meeting between Planning Commission deputy chairman Madhu Dandavate and Karnataka deputy chief minister Siddaramaiah, includes Rs 6,148.07 crore Central assistance and Rs 17,251.93 crore from the state resources.

The Central assistance would include assistance for externally aided projects also in the areas of basic minimum services, slum development and areas programmes.

Dandavate said additional emphasis should be placed on irrigation projects but warned that Karnataka should first concentrate on on-going projects before taking up new schemes.

He said additional funds would be made available to the states following the Union governments decision on devolution of Central taxes and transfer of Centrally sponsored schemes to states, alongwith funds.

In the ninth plan, 33 per cent of the available funds would be for irrigation and agriculture, said Siddaramaiah, while emphasising that increasing irrigation potential was a priority area for the next five years.

Stating that Karnataka would soon go in for disinvestment of state public sector undertakings to reduce the burden on the exchequer, he said his government was determined to cut down subsidy in a phased manner. He said Karnataka intended to generate additional power of over 3,500 mw during the ninth plan and had signed memorandum of understanding with private companies to generate over 9,000 mw.

On the social sector, Siddaramaiah said priority will be on primary education, drinking water and primary health services.

The state would require nearly Rs 1,000 crore for providing safe drinking water to all.

While warning of the large spill-over effects, Dandavate said Karnataka should concentrate on completing all the on-going projects before taking up fresh ones and said there was also a need to strengthen the mechanism for disease prevention and surveillance.