Orissa State Annual Plan, 2006-07

By: EconomyWatch   Date: 30 June 2010

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The size of the annual plan for 2006-07 for the State of Orissa was finalized at a meeting between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister, Sh Navin Patnaik. The State will have a plan size of Rs.3500 crores. This would include additional Central Assistance of Rs 68 crore for projects of special interest to the State.

Deputy Chairman, Planning Commission, complimented the State for distinct improvement in the fiscal indicators. He said growth rate, fiscal deficit as well as revenue deficit were moving on positive trend. The State was asked to give focused attention to critical sectors, which include power, Accelerated Irrigation Benefit Programme (AIBP) and ICDS. Emphasis was also needed in tapping huge unfulfilled potential in fisheries, animal husbandry and horticulture.

Shri Ahluwalia also complimented the State Government for creating investor friendly environment but pointed out that social aspects of industrialization have to be given due importance. He said a globally comparable rehabilitation policy should be put in place to generate public support for the development strategy.

He said the Central Government was giving focused attention to the development of backward areas and a number of programmes including Bharat Nirman, Backward Region Grant Fund and Rural Health Mission have been introduced and States like Orissa will witnesses major increase in the flow of funds for development of backward regions. Efficient use of these funds would help bridge regional imbalance and place country on a sustainable high growth trajectory.

Briefing the Commission on plan performance, Chief Minister said that Orissa has been continuously striving to improve its fiscal health, enhance its plan performance and create an investor-friendly environment within the State to attract more investment for diversifying its economy, promoting higher growth and increasing employment and livelihood opportunities for local people.

He said the State Government has taken a number of measures for augmentation of revenue and compression of unproductive revenue expenditure. The Orissa Fiscal Responsibility & Budget Management Act, 2005 which has already been enacted, mandates, among other things, that revenue deficit should be brought down to zero level and fiscal deficit to 3 per cent of Gross State Domestic Product (GSDP) by the end of the year 2008-09. The State has been able to enhance its own resources from Rs.490.02 crore in 2002-03 to Rs.2,133.39 crore in 2004-05.

The Chief Minister said the socio-economic development strategy of the State includes mobilization of additional revenue and reducing unproductive expenditure, accelerating PSU reforms and improving governance and service delivery mechanism. Strengthening of social security system and building rural and urban productive infrastructure, would be among the priorities for the next fiscal.

He said a comprehensive and detailed rehabilitation programme is being evolved and a group of ministers set up for this purpose were engaged in consulting all stakeholders for this purpose.

 

 


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