Karnataka State Annual Plan, 2006-07

By: EconomyWatch   Date: 30 June 2010

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The Annual Plan for Karnataka for the year 2006-07 was finalized at a meeting between Deputy Chairman, Planning Commission Shri Montek Singh Ahluwalia and Chief Minister of Karnataka, Shri Dharam Singh. The plan size was agreed at Rs.16166 crores.

The Deputy Chairman said that Karnataka was among the better performing States in the country. In the social sector, the State has been doing well with health indicators better than the national average. Performance in the horticulture sector is commendable but the State needs to promote food processing.

He said the Commission was concerned about States being constrained to release funds for development projects and pointed out that the Commission was supportive of fiscal deficit being linked to growth potential. He said the Commission would carry out an analysis on the fiscal strength of each State to assess level of borrowings that each State can be permitted. He pointed out that States with positive balance were not willing to release fund for development projects.

He said the Prime Minister has directed Planning Commission to focus attention on implementation of flagship programmes of NCMP with special attention to Bharat Nirman. He said during the next financial year State was likely to get substantial fund flow from Centre for programmes like rural health mission, Bharat nirman, national urban renewal fund and backward region grant fund. The State should converge resources to expedite development of backward districts and help Central Government in putting the country in a sustainable high trajectory growth path. He said the Prime Minister has desired to make Bangalore along with Mumbai a Modern and Globally comparable Metropolitan City. The Chief Minister said that irrigation, energy and transport will get high priority in next year's development plan with allocations of 28 per cent, 16 per cent, 100 per cent of the outlay respectively. He said Karnataka was one of the few major States, which had consistently realized more resources than projected in the Five Year Plans. He said the State Government seeks to promote growth more purposefully without compromising on equity and social justice.

He said Karnataka continues to be the front-runner in IT and BT sectors and Bangalore City was the most sought after destination for investments in these sectors. He said industrial investments of over Rs.78, 000 crores have been cleared since the present coalition government assumed office. Development of tier-2 cities of Mysore, Mangalore, Hubli-Dharwad and Gulbarga has been taken up to make them more attractive for investment.

He said substantial improvement has been recorded in the power sector and power supply to rural areas has gone up to 9 hours from mere 6 hours two years back. Work is in progress to add additional installed capacity to an extent of 3,900 MW from the on-going projects. An investment of around Rs.7000 crores has been planned in Bangalore city in addition to investment under NURM. He sought Planning Commission's help in getting early approval of Bangalore Metro Rail Project.

Commission's support was also sought for co-finance to the extent of 50 per cent of special package of Rs.9, 600 crores over eight years for the development of backward districts in northern Karnataka.


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