Bihar State Annual Plan, 2006-07
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Annual Plan size for Bihar for the year 2006-07 was approved at a meeting between the Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Bihar, Shri Nitish Kumar. The Plan outlay was agreed at Rs.8250 crores, which includes additional Central assistance of Rs.50 crores for priority schemes of the State.
Annual Plan size for Bihar for the year 2006-07 was approved at a meeting between the Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Bihar, Shri Nitish Kumar. The Plan outlay was agreed at Rs.8250 crores, which includes additional Central assistance of Rs.50 crores for priority schemes of the State.
Mr. Ahluwalia said the Prime Minister is keen on expediting development of Bihar and has directed Planning Commission to put in special efforts. He said a Team of Experts from Planning Commission would be visiting the State shortly to have an on the spot assessment of problems and evolve means for speedy addressal. He said the Commission will request Finance Ministry to enhance borrowing limit of Bihar as a special case in wake of huge infrastructure gaps.
He said the State was likely to get increased flow of funds in the new programmes announced by the Central Government for improving infrastructure and rejuvenating economic activities in rural and backward areas. Need is to ensure better and timely completion of these programmes. The programmes like Bharat Nirman, rural roads development, backward region grant fund and employment guarantee programme would help the State in accelerating development and improving rural economy.
The State Government was appreciated for major initiatives including administrative reforms, decentralization and simplification of procedures, delegation of powers and actions taken to implement mission mode programmes launched by the Union Government on priority for development of Bihar. Initiative to extend employment guarantee programme to all districts was also appreciated. The State was asked to prepare a road map for long-term development of the power sector and attention was drawn to large number of villages and households still to be electrified.
Attention was also drawn to slow pace of expenditure in Sarva Siksha Abhiyan and non-availability of land for construction of school buildings. It was pointed out that around 20 lakh boys and girls are out of school and efforts should be made to improve enrolment. In the health sector there are substantial gaps in health services at every level. It was suggested that district level service cadre should be created and vocational training be popularized for skill up-gradation.
Briefing the Commission on the new initiatives taken by the government to accelerate development, the Chief Minister thanked Central Government for the cooperation being extended in rebuilding Bihar. He said the government was planning to introduce fiscal responsibility and budget management act through ordinance which would aim at bringing down the revenue deficit to zero and fiscal deficit to 3 per cent of SGDP. He said in power sector reforms, regulatory commission has already been set up and Bihar State Electricity Board has been unbundled into six companies. Administrative Commission has been set up and financial rules amended.
New initiatives aimed at increasing revenue include introduction of new excise policy, rationalization of VAT and entertainment tax and new transport policy. Reforms aimed at attracting investment include fast track clearance through State Investment Promotion Board and incentive packages for sugar industry, technical education, health care and hospitality. He said Panchayati Raj Act has been amended and 50 per cent seats reserved for women and Panchayat Judicial System put in place. Other initiatives include drainage scheme to prevent water logging and project for inter-linking of rivers.
