Orissa Plan outlay pegged at Rs 3,200 crore

Orissa's annual plan outlay for 2003-04 has been fixed at Rs 3,200 crore. This has been decided after discussion between chief minister Naveen Patnaik with deputy chairman of the Planning Commission, KC Pant in New Delhi.

The current year's plan size is about Rs 700 crore more than the actual outlay of the previous year. The plan size for 2002-03 was also fixed at Rs 3,200 crore, but the actual spending during the year was about Rs 2,500 crore.

Minister of state for finance Panchanan Kanungo, members of the planning commission and senior state government officials assisted both the sides during discussion.

The chief minister had a separate meeting with finance minister Jaswant Singh on augmenting resources for the state plan.

Sources said, the Centre is negotiating with the World Bank and the UK's Department for International Development (DFID) for sanction of structural adjustment loan and an additional resource component of Rs 850 crore is expected be available to the state in the current year.

Besides, the state government will also be allowed to benefit from the government of India scheme for additional market borrowing to swap high cost debts of previous years with loans carrying lower interest rates.

Official sources said this will bring down the debt servicing burden of the state to a great extent.

Sources claimed that the deputy chairman and other members of the planning commission appreciated the efforts made by the state government in implementing financial and public sectors reforms.

These have improved the overall financial scenario in the state resulting in reduction of the ratio of revenue deficit to revenue receipt from 43 per cent in 1999-2000 to 25 per cent in 2002-03, the annual reduction average being more than 6 per cent against the target of 5 per cent recommended by the Eleventh Finance Commission.

The Commission has indicated that the state has tremendous potential in the areas of tourism, horticulture, floriculture, pisciulture and dairy development and advised the state government to make efforts for improving productivity in these areas for overall development of the state and generating large scale employment.