New Delhi, April 26
The Planning Commission today approved the Rs 3,021-crore Annual Plan for Punjab for 2001-02, which is 25 per cent more than the Rs 2,420-crore Plan approved for 2000-01.
The Plan size was decided at a meeting between the Deputy Chairman of Planning Commission, Mr K. C. Pant, and the state Chief Minister, Mr Parkash Singh Badal, here.
It was agreed to constitute a task force on agriculture to look into the various problems for food surplus states such as Punjab due to the implementation of the WTO regime.
The Planning Commission also agreed in principle with the state government’s proposal to constitute an agriculture readjustment fund for ensuring a smooth transition from the present wheat-rice rotation towards diversified agriculture over a period of time.
Mr Badal requested the help of the Planning Commission to augment
irrigation and power infrastructure and effectively undertake programmes for the welfare of SC and other poorer sections of society .
The Planning Commission also agreed to provide a Central assistance of Rs 25 crore for a ‘second push to agriculture and the allied sector’.
It was also agreed to retain the outlay under the Accelerated Irrigation Benefit Programme at Rs 200 crore and outlay for externally aided projects at Rs 265 crore.
To the Annual Plan of Rs 3,021 crore, another Rs 70 crore would be added, which the Punjab Government will draw from the Fiscal Facility Fund and Rs 80 crore under the Accelerated Power Development Programme, which would further increase the Plan size by Rs 150 crore.
Mr Badal informed the commission that the state recorded a growth rate of 6.9 in 1999-2000, mainly due to agriculture and allied sectors which grew by 8.3 per cent as compared to 2.54 per cent a year ago. Adequate safety measures need to be taken in view of the challenges posed by the WTO to the Indian agriculture.
On the financial health of the state, he said restoration efforts on a medium term were on. Revenue deficit as a percentage of revenue receipts was likely to come down to 25 per cent in 2000-01 from 45 per cent in 1998-99.
Tax revenue recorded an increase of 21 per cent in 1999-2000 and was expected to record a growth of 30 per cent in 2000-01. He said the Non-Plan revenue expenditure has been compressed from a trend rate of 16 per cent to 12 per cent during 2000-01.
Mr Pant appreciated the state for achieving high per capita income and literacy rate and reduced poverty level. He, however, pointed out that the ratio of females in the state had fallen from 882 for every 1000 ten years ago (when the national sex ratio was 927:1000) to 874 in the 2001 Census which put the national ratio at 933:1000.
He asked the state government to go into the causes and formulate strategies and action plan to correct the imbalance.
The state was also advised to address the regional prosperity imbalance and proportionate imbalance in the allocation of funds for the scheduled castes.
Other areas of concern were the increasing dependence on borrowing and falling receipts of non-tax revenue, increasing net commercial loss of Punjab State Electricity Board and Punjab Roadways.
The Deputy Chairman suggested that the state may go for energy audit measures and install meters for all consumers by the end of this year to reduce transmission and distribution losses.
The production of cotton, oilseeds and maize has fallen in recent years and suggested that the programme ‘second push to agriculture and allied sectors’ should be implemented for five years.
Bio-technology should form an important component of the programme. The WTO regime called for fundamental rethinking on the minimum support price system, he said.
