Rajasthan Annual Plan gets Rs. 4,146 cr.

By Our Special Correspondent

NEW DELHI, AUG. 9. The 2000-2001 Annual Plan for Rajasthan has been finalised at Rs. 4,146 crores on the basis of identifiable resources. The Plan size was finalised by the Deputy Chairman of the Planning Commission, Mr. K. C. Pant, and the Chief Minister, Mr. Ashok Ghelot, at a meeting here today.

The meeting appreciated Rajasthan's recent fiscal rectitude measures like revision of sales tax, electricity tariff and expenditure control by introducing a 10 per cent cut in non-Plan expenditure and abolition of 5,526 posts in various cadres. However, Mr. Pant pointed out that the State's borrowings as a percentage of aggregate Plan resources had increased from 94.26 per cent in 1997-98 to 229.66 per cent in 1999-2000. Similarly, the State's own resources declined from minus 20.49 per cent to minus 262.77 per cent during the same period.

On infrastructure, it was pointed out that the State Road Transport Corporation's performance was appreciable. The Rajasthan State Electricity Board's financial position required immediate improvement. The rate of return on net fixed assets as per revised estimates of the last fiscal year were likely to be negative, primarily because of the low agricultural tariff and the large gap between average revenue and cost per unit. The commercial losses of the Board have also increased to Rs. 1,512.85 crores in 1999-2000.

It was also suggested to the State administration that some social indicators required improvement, particularly the female literacy rate.

In his presentation, Mr. Ghelot suggested a review of the formula for allocation of Central assistance and said geographical and social conditions of the State should be considered while finalising Central assistance to States. He pointed out that Rajasthan was the first to enter into a Memorandum of Understanding with the Central Government and had carried out more than 90 per cent of the commitments made. Some of the other steps taken by the administration include downsizing of the Plan size, a two per cent increase in sales tax on petrol, 12 to 15 per cent increase on surcharge on sales tax, entry tax on sugar, tobacco and cloth and revision of power tariff which was expected to generate an additional revenue of Rs. 480 crores. He pointed out that the State was planning to further abolish 10,000 posts during the current year. Also, there were plans to set up 11,000 new schools during the year which would be managed by women teachers.

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