The Planning Commission yesterday approved an annual plan outlay of Rs 4,500 crore for 1997-98 for Gujarat, a 33 per cent rise over the current years size of Rs 3,378 crore.
Gujarat Chief Minister Sankarsinh Vaghela, who was present when the outlay was approved, said states should be allowed to retain the unspent part of a project in the next year to curb the tendency to spend the amount for non-productive purposes in the same year.
Vaghela said Gujarat would immediately focus on literacy drives, safe drinking water and primary health care and take up the other programmes under the basic minimum services at a later stage.
Planning Commission deputy chairman Madhu Dandavate complimented the state administration for its energetic efforts to collect taxes and implementation of externally aided projects. But he also pointed out that measures should be taken to cut down the heavy losses of the Gujarat Electricity Board.
The Commission also approved the annual plan of Arunachal Pradesh whose plan size has been increased from Rs 520 crore in the current year to Rs 600 crore in the next year.
