While the government is aiming at an 8 per cent growth rate in the Tenth Five-Year Plan, it has reduced the Plan outlays for 14 states.
The cut between the Ninth Plan and the Tenth Plan is between 4 per cent and 31 per cent.
Hikes, where granted, are significant, with three states receiving over 30 per cent increase in allocations for the Tenth Plan.
More From This Section
However, these states alone cannot be expected to increase the gross domestic product growth rate by over 2 per cent. The average GDP growth during the Ninth Plan was 5.7 per cent.
Interestingly, for the Tenth Plan, the government has prepared a statewise growth target to reduce regional disparities. It is aimed at identifying the sectors that states should focus on to maximise growth.
Karnataka, Gujarat, Delhi, West Bengal, Tamil Nadu and Rajasthan are expected to grow at over 8 per cent per annum during the Tenth Plan. Of these, Delhi, Gujarat and Karnataka are expected to grow at a rate of over 10 per cent per year.
While Plan allocations for five of these states have been increased, Rajasthan's allocation has been cut by 10 per cent, from Rs 30,360 crore in the Ninth Plan to Rs 27,320 crore in the Tenth Plan.
Plan allocation for Karnataka has been increased by 38 per cent. West Bengal's outlay has gone up by 26 per cent.
While Tamil Nadu will get 19 per cent more, Gujarat and Delhi will get 6 per cent and 10 per cent more funds, respectively. Plan allocations for Maharashtra and Himachal Pradesh have been increased by 34 per cent.
All states in the Northeast, except Mizoram, have seen a drop in their allocations, with Assam's allocation being cut by 30 per cent to Rs 8,300 crore in the Tenth Plan from Rs 12,100 crore in the Ninth Plan.