MP seeks to cut budget deficit

Buoyed by the Plan panel sanction for Rs 9,020-crore plan size for 2006-07, the Madhya Pradesh government is now working on bringing down the revenue deficit to zero to present a zero-based Budget. The Budget session in assembly will begin on February 14. The state's fiscal deficit will be 3 per cent of the gross state domestic product.

"Let the Budget come. I am not in a position to disclose now, but our target is to bring down the revenue deficit to zero by 2008-09. But we are well on our path," said Raghavji, finance minister, told Business Standard.

The finance minister had presented plan size of Rs 8950 crore before Plan Panel on 6 February in New Delhi. To which the Panel had approved 'in-principal' and sanctioned an amount of Rs 9020 crore up Rs 70 crore.

"Plan panel sanctioned Rs 80 crore as one time assistance against Rs 100 crore," said Raghavji adding, "But our demand to get ad velorem on coal royalty did not met." At present most of the state gets coal royalty on tonnage base. "It should be Rs 293 crore, we lose it every year," he said. The Plan size of the state has been increased by 21% "" a historic achievement for the finance minister, "last year it was Rs 7471 crore."

The plan expenditure will be Rs 427.76 crore on agriculture and allied services, Rs 1496.10 crore on rural development, Rs 1894.01 crore on irrigation and flood control, Rs 1316.07 crore on energy, Rs 96.01 crore on mining, Rs 897.63 crore on transportation, Rs 11.86 crore on science and technology, Rs 220.68 crore on general economic services, Rs 2480.27 crore on social services, and Rs 109.61 crore on general services.

The state also proposed Rs 3095 crore for district plan, which is 35 per cent of the total plan.

The plan expenditure on school education has been increased to Rs 1100 crore (2006-07) from Rs 307 crore of 2003-04 (258 per cent), Rs 1894 on irrigation up 72 per cent from 1104 crore, Rs 897 crore up 151 per cent from Rs 357 crore (03-04) Rs 1496 crore up 162 per cent from Rs 570 crore (03-04). However in power, agriculture and health the plan size is not more than 15 per cent.

The plan size on energy is Rs 1316 crore for 2006-07 against Rs 1145 crore during 2003-04, Rs 427 crore on agriculture (2006-07) against Rs 359 crore (2003-04) and Rs 170 crore (2006-07) up 10 per cent from Rs 154 of 2003-04.