Opposition resents Plan size cut

By Our Special Correspondent

THIRUVANANTHAPURAM, AUG. 8. The Opposition LDF has taken strong exception to the sharp reduction in the State's Plan outlay for 2001-02.

The Leader of the Opposition, Mr. V.S. Achuthanandan, has termed the reduction in the Plan outlay from Rs. 3,317 crores in 2000-01 to Rs. 3,015 crores in 2001-02 as one that would put the State's development process in the reverse gear and has called for urgent measures to rectify the anomaly.

Reacting to the Plan panel decision in a statement here today, Mr. Achuthanandan said it is incomprehensible why the Chief Minister and a team of officials went to Delhi if it were for getting the State's Plan outlay reduced from Rs. 3,600 crores proposed by the previous LDF government to just Rs. Rs. 3,015 crores. The State has enough avenues for additional resource mobilisation, but the Antony government seems bent on foregoing all the available options and slashing the Plan size. This is totally unacceptable, he said.

The Opposition leader claimed that the State could have stuck to the Plan size fixed by the LDF government if it were willing to go in for additional resource mobilisation envisaged by the LDF Government. The reduction in the State's Plan size would hurt the efforts of decentralisation of powers and the worst-hit would be the three-tier local bodies which had received roughly three- fourths of the annual Plan outlay during the first four years of the Ninth Five Year Plan period.

Mr. Achuthanandan pointed out that the local bodies would now get only 29.5 per cent (Rs. 890 crores) of the total Plan outlay. This would deal a major blow to the efforts at decentralisation. The UDF has been paying lip service to decentralisation and promising that it would stick to the devolution formula followed by the LDF Government. This is nothing short of hypocrisy, he said.

The Opposition leader said the level of fund devolution to the States has been falling over the last few years. During the last year of the LDF Government, the Centre had slashed the funds due to Kerala by Rs. 1,264 crores. Kerala, West Bengal and certain other States had demanded that at least 50 per cent of the Central tax revenue should be devolved to the States. However, the Centre has not accepted this demand.

Mr. Achuthanandan said the Government should have tried to convince the Centre about the rationale for a higher allocation and pressed for it during its interaction with the Planning Commission. That it could not do this is most condemnable, he said.

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Section  : Southern States
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