Date:22/12/2004 URL: http://www.thehindubusinessline.com/2004/12/22/stories/2004122201161700.htm

Back M.P. annual Plan outlay fixed at Rs 7,471 cr

Our Bureau

New Delhi , Dec. 21

THE annual Plan of Madhya Pradesh for 2005-06 has been fixed at Rs 7,471 crore that includes one-time additional Central assistance of Rs 60 crore, against the current fiscal year approved Plan size of Rs 6,709.96 crore.

This was decided here at a meeting between the Planning Commission Deputy Chairman, Dr Montek Singh Ahluwalia, and the State Chief Minister, Babulal Gaur.

In his initial observations, the Deputy Chairman complimented the State, noting that fiscal reforms were moving in the right direction but said the State must give more importance to agriculture.

He urged the State to bestow more attention on public-private partnership in the road sector, while power sector remains by far the single most important area to improve investment climate.

Dr Ahluwalia said multilateral agencies including the World Bank and the Asian Development Bank have now indicated their willingness to substantially step up lending in India and Madhya Pradesh should further explore the possibility of getting assistance from these external agencies to develop roads.

Members of the Plan panel drew the attention of the State authorities to unsustainable population growth and high infant mortality rate.

The Chief Minister briefed the Commission on Plan performance and said the State's own resources were expected to exceed targets.

He said there were substantial improvements in both tax and non-tax receipts, besides reduction in non-Plan revenue expenditure.

Official expenditure has been cut by 10 per cent, he said.