The Hindu : J&K Plan fixed at Rs. 2,500-cr.

Online edition of India's National Newspaper
Friday, May 30, 2003

National

National

J&K Plan fixed at Rs. 2,500-cr.

By Our Special Correspondent

NEW DELHI MAY 29. In keeping with the Prime Minister's commitment to Jammu and Kashmir, the Central Government today fixed the State's Annual Plan for 2003-04 at Rs. 2,500 crores, an increase of about Rs. 300 crores over last year's allocation.

The Chief Minister, Mufti Mohammed Sayeed, told presspersons after a meeting with the Planning Commission Deputy Chairman, K. C. Pant, that "notwithstanding the very generous announcement of the Prime Minister of a Plan size of Rs. 2,600 crores, we have on our own decided on a Plan size of Rs 2,500 crores". However, he wanted the Planning Commission to honour the commitment made by the Prime Minister and sought an additional Rs. 100 crores as grant for seed capital to create a consolidated sinking fund for the State. There was no immediate response from the Commission.

During the meeting, it was emphasised that the State had to focus on specific development programmes, including the planned development of the Ladakh region. Also, in keeping with Mr. Vajpayee's announcement, the Commission increased the allocation for the border area development plan to Rs. 100 crores per year for five years, effective 2002-03. Mr. Pant asked the State Government to ensure implementation of the package in right earnest and said that handicrafts and tourism had the potential for employment generation and sustained economic development. Special attention was needed to develop infrastructure and encourage private sector participation for boosting tourism activities, he added.

Mr. Pant noted that the State had initiated moves for improving the financial position but felt that more focussed attention was required in sectors such as power, education and fiscal reforms. The balance of current revenues position was deteriorating and the State should implement the MoU signed with the Union Finance Ministry in letter and spirit for improving the fiscal situation.

In his presentation, Mr. Sayeed said that his Government's healing touch policy had a large financial cost attached to it and if the policy were to yield results quickly, ways would have to be found to finance it. He outlined several plans which include bringing back the culture to pay for Government services, moving towards fiscal discipline laid down by the Reserve Bank, making unprecedented efforts for additional resource mobilisation and beginning a big drive for recovery of arrears, especially in the power sector.

Rs. 500-cr. Nagaland Plan

Later in the day, the 2003-04 Annual Plan for Nagaland was fixed at Rs.500 crores during a meeting between Mr. Pant and the Nagaland Chief Minister, Neiphiu Rio.

Mr. Pant complimented the State for progress in creation of physical infrastructure and provision of social services and pointed out that the State's human development levels were satisfactory and its health indices and literacy levels substantially higher than the national average. The empowerment of village development boards and village development councils, he said, was a step in right direction.

Mr. Rio briefed the Commission on efforts aimed at reducing expenditure, improving administrative machinery and introducing transparency to improve delivery systems despite serious resource constraint and requested the Commission to appreciate initiatives taken to introduce reforms.

Printer friendly page
Send this article to Friends by E-Mail

National