They said the maximum that the outlay can go up to is Rs 55,000 crore. The previous year's total state plan outlay was Rs 46,000 crore. However, there was a shortfall of Rs 4,000 crore primarily due to the low additional resource mobilisation by the states. A factor contributing to the low resource mobilisation is the poor working of the state electricity boards, the officials said.
The plan outlay of the states includes the state government's own resources, transfer of funds through the finance commission and transfer through the Planning Commission. A total of Rs 22,000 crore will be transferred through the commission in 1996-97.
The annual plan discussions for the states are on. These are being organised under the chairmanship of Madhu Dandvate, deputy chairman, Planning Commission. The Chief Ministers, alongwith their officers are participating in the discussions. The exercise began on August 20 with the state of Arunachal Pradesh for which Rs 520 crore has been set aside for 1996-97. The state plan exercise for the year had been postponed following a decision by the former deputy chairman of the Planning Commission, Pranab Mukherjee, to let the incoming government finalise the funds to be allocated to the states.
In a letter to the chief ministers in December last the deputy chairman had said that discussions on the size of the central plan assistance will be held only after a fresh commission is constituted after the general elections. It was felt that an outgoing government should not decide on issues that will have a bearing on the states finances for the entire year ahead.
Meanwhile, the states had been told that they were free to decide on whether to go in for a vote on account or take the assistance at the current year's level.
The plan size for each state as well as the contours of the annual plan would be finalised during these meetings.
Further, in a bid to involve the states in the formulation of the ninth five year plan, the deputy chairman has asked the chief ministers to present their views and thought regarding the broad priorities, approaches, strategies and framework of the ninth plan. On the basis of these discussions an approach document for the ninth plan will be prepared and submitted to the NDC for consideration.