Shri Montek Singh Ahluwalia complimented the State for good performance and said the State has developed capability to reach over 8 per cent growth rate during the eleventh plan period. He said there is visible improvement in the fiscal indicators of the State and investor friendly environment has been created. The State was also appreciated for high per capita income.
Appreciating the high literacy rate, the Commission suggested that the State should target to be the first major State with 100 per cent literacy during the next eleventh Plan period. Innovative approach to increase green cover was also appreciated and it was suggested that agro-forestry should be introduced in other areas. Encouraging public private partnership in all sectors of economic activities was also lauded. The State was asked to give more focused attention to reducing transmission & distribution losses and improving collection efficiency in the power sector.
Briefing the Commission on the performance of the State, Shri Hooda said that fiscal discipline with emphasis on infrastructure development are being given top priority. The State is targeting to achieve goals set under FRBM Act. It aims at eliminating revenue deficit by 2008-09 and reducing fiscal deficit to 3 per cent of GSDP during the same period. All high costs debt is being swapped to reduce interest liability and efforts are on to improve resource mobilization for which a Committee under his Chairmanship has been set up.
Other measures aimed at improving fiscal management include introduction of new contributory pension scheme, external audit of engineering departments and delegation of vast powers to departments to sanction expenditure under improved plan schemes. He said to ensure better utilization of limited water resources, Centre should fund construction of dams in upper reaches of Yamuna river and calamity relief norms should be revised so that all States can utilize funds being made available under this programme. He also sought review of fund being made available for maintenance and up-gradation of National Highways.