The government today set the core Plan size for Rajasthan for 2003-04 at Rs 4,258 crore. The Plan size was finalised today at a meeting between Deputy Chairman, Planning Commission, KC Pant and the Rajasthan Chief Minister, Ashok Gehlot.
The Plan body also agreed to consider upward revision of the Plan size at a later stage, if the State was able to generate more resources. The currently approved Plan includes additional central assistance of Rs 50 crore for schemes of special importance.
Speaking on the occassion, Pant said that in recognition of the excellent performance in the water sector, Rajashtan had been declared a reforming State and was entitled to higher AIBP funding.
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Fresh initiatives in the water resources sector include adoption of a State water policy, formulation of a State water resource plan and preparation of water resources vision 2045.
Reform measures taken in medium-term fiscal restructuring, power sector and irrigation should be aimed at increasing resources and reducing the burden of debt and subsidies, he said.
Pointing out that the states debt burden has been increasing, he said that the debt stock had gone up from Rs 1,643 crore in March, 1998 to Rs 40,890 crore in March, 2003.
A cap on off-budget borrowing was recommended, as debt service and interest payment burden was high.
NK Singh, Member Planning Commission drew the attention of the State towards growing pension and debt liability and suggested that State should seek expert opinion on pension and debt rescheduling.
He also recommended that the State Government should take advantage of pension reform incentive fund created by the center recently.
Pant also pointed out that investment in agriculture was showing a declining trend since the 1980s. He said there was an urgent need to take corrective measures.
Because of strong forward and backward linkages and its role in employment generation and poverty alleviation, rural economy, it has a vital role in the economic health of the country.
He said in the backdrop of Tenth Five Year Plan setting ambitious but achievable targets in respect of GDP and quality of life, major States such as Rajasthan should strive to register annual growth rates of more than 8 per cent.