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Bigger Plan for Punjab, subsidies may be cut
Ajay Banerjee
Tribune News Service

Chandigarh, February 13
Punjab will have Rs 6,100 crore plan outlay for next fiscal year starting April 1. There is increase of Rs 1,000 crore over the existing year. Power and agriculture sectors would be thrust areas, sources said .Draft plan was placed at a high -level meeting here today.

THRUST AREAS 1. Agriculture 2. Power purchase

The outlay plan has been increased but it is not known where from so much money to fund schemes in the next year will come. The state has been finding it difficult meet commitments even this year. Finance Department officials have told the ruling combine huge subsidies cannot continue if the state wants to implement the plan.

However, the state government, like this year, will be committed to meet all financial obligations for central schemes and its share in such schemes.

The plan will be an increase of Rs 1,000 crore over existing plan of Rs 5,111 crore. Punjab will present it new plan in discussion with deputy chairman of the Planning Commission Montek Singh Ahluwalia in next few days. Minor modifications may be incorporated.

Sources in the government said, 35 per cent of the plan or nearly Rs 2,200 crore would be spending on power in next fiscal year. This will largely target buying power and tiding over power subsidy rather than anything productive. Last year about Rs 1900 crore was for power. The government will be giving thrust to the agriculture sector and 7 per cent of its plan outlay or Rs 420 crore, will be the plan size. This year it is mere Rs 125 crore.

Sources said the increase was necessitated as the central National Agriculture Mission had schemes linked to the plan size of the state governments. The bigger the plan size of the state the Centre will give matching grants. So in case the state spends Rs 420 crore it gets a same amount from the Centre.

In the irrigation sector the plan outlay will be about 5 per cent or Rs 300 crore of the plan. This will be also target revamping canal network.

The state promises to continue social sector obligations and will earmark about 19 per cent or Rs 1150 crore for such schemes. Another 16 per cent of the plan will be target the transport sector. These are major thrust areas.

The plan was discussed at a meeting chaired by Chief Minister Parkash Singh Badal and attended by almost all Cabinet ministers.