Plan Size For Gujarat Raised By 16 Per Cent

The state Plan for Gujarat has been hiked substantially by 16 per cent this year. The Plan size for 2000-01 was finalised at Rs 7,600 crore yesterday, at a meeting between the Deputy Chairman of the Planning Commission and the Chief Minister of Gujarat.

The sharp increase in the Plan size has come about because of the steps taken by the state to increase it's resources. Allocations to states are being made conditional to their accepting and implementing the agreed agenda for reforms.

Following the agreement between states not to compete among themselves for investments by offering tax concessions, Gujarat has discontinued the tax incentive policy aimed at promoting industries, fixed uniform floor rates in sales tax and imposed a surcharge of 10 per cent on sales tax. These measures are expected to generate over Rs 550 crores for the state this year.

 

In addition, the state has closed down three state Public Sector Units and is in the process of closing three others.

The state has also announced a revised 15 point time bound economic action plan which includes augmenting industrial investment by introducing a new industrial policy, increasing irrigation area and agricultural production by 15 and 14 per cent respectively.

This year, the State plans allocate the maximum possible funds for the Sardar Sarovar Project, create additional employment opportunities on a large scale, ensure early completion of on going projects and raise substantial additional resources by way of external assistance.

"Gujarat is at the forefront in the fiscal consolidation exercise, with the highest share of social and economic expenditure in the total expenditure," said Keshubhai Patel, Chief Minister of Gujarat. Non development expenditure is 28.2 per cent as against a national average of 35.2 per cent, he added.