Expert panel to oversee use of economic, social funds

The state government is working out the modalities of utilising the money to be raised through the proposed economic and social funds.

The government will soon constitute an experts' committee to oversee the procedure in which the funds are utilised.

To begin with, the government will seek the approval of the central government and the Reserve Bank of India (RBI) to set up these two funds.

The proposed funds will comprise money collected from institutions and individuals.

While the government will use amounts from the economic fund to invest for further generation of wealth, money collected in the social fund will be used in areas where donors want the government to spend in. Government sources did not elaborate on the method through which the funds will be raised and how the money will be invested or spent.

It is learnt that setting up of these two funds will be announced by the state government in its Budget that is likely the next month.

State finance minister Vajubhai Vala, without elaborating on what these funds would be like, said, "A decision has been taken in principle to set up the funds. What procedure will be followed, what the funds will be like and where the money collected will be invested or spent, is being worked out. I think setting up of the funds will be announced during the state Budget."

However, chief minister Narendra Modi provided a hint of how the money collected will be used, when he said the amount collected in the economic fund will be invested "safely" to generate more wealth.

The social fund, the chief minister said, will be used in areas of social development, but most importantly, in those areas where the donors want this funds to be utilised.

Importantly, he said this at the inaugural function of the 'Vishwa Gujarati Parivaar Mahotsav' on Tuesday, where hundreds of visiting non-resident Gujaratis (NRGs) were present.

"The state government will soon seek the approval of the central Government and the Reserve Bank of India to set up these funds," the chief minister said.

Stating that the state government will achieve a double-digit growth rate in the next one year itself, while a 10.2 per cent growth rate target has been set for it over the next five years by the Planning Commission, Modi said the state has sought an overdraft just one time in the past one year, that too for making advance payments of salaries to employees during Diwali.

"In just about a year, we have succeeded in bringing down the fiscal deficit from Rs 7,000 crore to less than Rs 2,500 crore today," the chief minister said.

It is learnt that the state finance department has already begun to prepare a detailed draft of the two funds. Sources said most of the amount collected in these two funds is likely to be received through non-resident Gujaratis.

There are several citizens' bodies in the US and European countries, like the 'Friends of Gujarat', which may be roped in to donate to these two funds.