Tuesday, March 9, 2010

Targeted growth rate of 9% in 11th Five year plan for Orissa

The Eleventh Five-Year Plan has envisaged a growth rate of 9% in the Orissa with a projected outlay of Rs 32,225 crore during the period, according to Governor Murlidhar Chandrakant Bhandare.

In his address to the Assembly on Monday, Mr Bhandare said that the state government had endeavoured to achieve a sustainable and inclusive higher economic growth, accelerated overall development, reduction of regional, social and gender disparities and a faster rate of poverty reduction.

The Governor attributed higher growth rate to the fiscal reform measures undertaken by the state government, which led to perceptible improvement in the financial condition of the state. Improvement in the finances of the State has not only resulted in increase of capital outlay but has considerably increased the size of the annual plan.

The state has been a revenue surplus state since 2005-06. “Improved fiscal situation has made it possible for my government to increase the state’s share of centrally sponsored schemes [CSS] from Rs 388.73 crore in 2005-06 to Rs 1900.48 crore in 2009-10 so as to access central assistance for CSS at a much higher scale”, he added.

The net debt stock has been reduced from 51.50% of GSDP into 2003-04 to 29.82% of GSDP in 2008-09 and the state is closing in to achieve the desired level of 28% as recommended by 12th Finance Commission, he remarked.

“With improvement in fiscal situation, the state government has not resorted to open market borrowings during 2006-07 to 2008-09 as a result of which the state government is on the threshold of achieving debt sustainability”, the Governor said.

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