Deputy chairman of the planning commission Madhu Dandavate yesterday said the gross budgetary support for the ninth plan would be raised by Rs 7,000 crore to Rs 374,000 crore.
Dandavate was speaking at the national conference of state backward classes commission. Earlier, the National Development Council had decided that the gross budgetary support during the ninth plan period would be Rs 367,000 crore.
Dandavate also said that there would be no cut in the ninth plan public sector outlay which is estimated at Rs 875,000 crore.
On priorities during the ninth plan, the deputy chairman stated that agriculture and rural development, which contribute nearly 35 per cent of the GDP, would be the first priority.
He said this sector was responsible for 35 per cent of the employment generation.
He also said it was upto the state governments to realise the objectives of the plan.
Dandavate also said that there exists a strong case for the introduction of presumptive tax to improve the resource position. He said the tax base must be widened and more people have to brought in the tax bracket.
He pointed out that against 85 per cent of the population paying taxes in Denmark, in 1980s only 0.9 per cent of the population was paying taxes in India.
