Orissa's GDP (Gross Domestic Product) is set to grow at the rate of 8.22 per cent in real terms during the 11th Plan Period (2007-12).
This was revealed from the address of Governor M C Bhandare to the state assembly on the inaugural day of the Budget session.
Similarly, shedding its lethargy in spending Plan funds, the state is expected to clock an expenditure of more than the projected Plan size of Rs 32,225 crore earmarked for the period.
“Annual Plan allocations have been substantially enhanced from Rs 5520 crore in 2007-08 to Rs 15,200 crore in 2010-11. The Plan expenditure during the first four years of the Plan period has been Rs 31,501.90 crore. It is expected that overall expenditure during the 11 th Five Year Plan will far exceed the original Plan outlay. The state is expected to grow in real terms at a rate of 8.22 per cent per annum during the 11th Plan”, the Governor said.
The state GDP has registered growth rates of 10.91 per cent, 7.24 per cent and 10.57 per cent in 2007-08, 2008-09 and 2009-10 respectively, posting higher growth than national average, according to data of Economic Survey for 2010-11 released by department of Planning and Coordination.
Unveiling the state government's plan for the 12th Five Year Plan, Bhandare said, “My government has already initiated action to prepare the 12th Five Year Plan spanning 2012-17, with a projected Plan outlay of Rs one lakh crore. An outlay of Rs 17,000 crore has been proposed for the Annual Plan for 2012-13.”
He attributed the sustained momentum in economic growth and improving expenditure levels to fiscal measures undertaken by the government including expenditure rationalization and revenue mobilisation.
Capital investment in the state has gone up from Rs 1038.06 crore in 2005-06 to Rs 4285.10 crore in 2010-11. As percentage of GDP, this has gone up from 1.24 per cent to 2.30 per cent.
The state has managed to reduce its net debt stock from 55.92 per cent of the GDP in 2001-02 to 21 per cent in 2010-11, thereby achieving the desired level of 25 per cent recommended by the 13th Finance Commission.
Besides, the ratio of interest to revenue receipts, which should be within the prudential level of 15 per cent, stood at 9.20 per cent in 2010-11.
The state government has been able to bring down net debt stock and ease interest burden through buy back/prepayment of high cost loans and debt swap. It has not resorted to open market borrowings since 2005-06 which has helped the state to achieve debt sustainability measures.
The Governor touched upon a host of welfare schemes being implemented by the government including Biju KBK (Kalahandi-Bolangir-Koraput) Yojana, Gopabandhu Grameen Yojana, Biju Gram Jyoti Yojana, Biju Saharanchal Vidyutikaran Yojana, rice at the rate of Rs two per kg, Madhubaba Pension Yojana, MAMATA, Mega Lift Irrigation scheme and Biju Setu Yojana.
Acknowledging the importance of agriculture sector in the economy, he said the state has a cultivable land of 6.16 million hectares of which irrigation facilities have been extended to 49 per cent of the area.
