By TCN News,
Patna: Bihar will get Rs. 20,000 crores from the Centre for its Annual Plan for the year 2010-11. The plan size was approved today at a meeting between the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia and Chief Minister of Bihar, Nitish Kumar. Bihar CM said that during current financial year social sector will get priority in plan allocation with over 36 per cent fund allocation.
Deputy Chairman Planning Commission Mr. Ahluwalia in his comments on the performance of the State said that there is lot of improvement in the plan utilisation and visible efforts have been made to improve economic activity and revenue generation. However, focused attention is needed to improve social and physical infrastructure. Public private partnership has to be encouraged to further accelerate pace of development in the State.
The Deputy Chairman advised the State to focus on improving farm productivity by intensive use of high yielding variety of seeds. The agriculture sector, he said contributes 35 per cent of State GDP and provides employment to 77 per cent of Bihar’s work force. It is a matter of concern that the productivity in respect of yield of total food grains of Bihar is lower than the All India average despite a favourable natural resources of fertile plan land, plenty of water, both surface as well as underground, and a favourable agro-climatic condition suitable for growing different types of crops.
Briefing the Commission on his development strategy, Nitish Kumar said that the focus of the State Government’s approach was to improve economic activity through better plan implementation and ensure that development is more inclusive. He said during last three years more than 90 per cent of the plan outlay has been utilised and the fact that power consumption has increased manifold in recent years indicate improved economic activity.
He said that during current financial year social sector will get priority in plan allocation with over 36 per cent fund allocation. Transport sector with 23.45 per cent allocation will be next in the priority. On fiscal management he said budgetary reforms with tax rationalisation has helped in bringing the fiscal deficit down to 3.5 per cent and tax revenue up from Rs.3561 crore in 2005-06 to Rs.8274 crores in 2009-10.