Deshmukh, Plan panel meet today on outlay

Deshmukh will be accompanied by a delegation of ministers and state level bureaucrats.

Secretariat sources said the state government will present a budgeted outlay plan of Rs 10, 246 crore and a non-budgeted component (market borrowings plan) of Rs 339 crore.

The state hopes to convince the Planning Commission of the large amount of funds (in the range of Rs 3,000 crore) that would be freed in the next fiscal when the Union government allows it to go for a debt swap of high interest government of India loans for cheaper assistance with a longer tenure.

The details to be presented before the commission include figures that show that 36.5 per cent of the total proposed spending by the state government in 2005-2006 will be to service its loan portfolio in interest and principal repayments.

However, computations by the state planning department has revealed that after paying for salaries, pensions, establishment costs and loan repayments, the state government expects to be left with just Rs 917 crore for undertaking development projects.

"Another aspect of the Rs 10,586 crore plan outlay is that it includes the entire component of the funds that would become available to the state government from the Centre for welfare projects. However, for these funds to be released to the state, it will also be required to match the Union government funding with a like sum for the proposed schemes," a senior official said.

Deshmukh will be accompanied by his deputy R R Patil and Maharashtra's finance minister Jayant Patil and finance department officials when he meets Union Planning Commission officials in New Delhi on Thursday.