The Annual Plan for Gujarat for 2011-12 was finalised at Rs38,000 crore at a meeting between chief minister Narendra Modi and planning commission deputy chairman Montek Singh Ahluwalia in New Delhi on Friday.
The approved plan size is 26.67% higher than previous year's plan size of Rs30,000 crore. During the meeting, Modi expressed confidence that the state's economy would achieve targeted growth of 11.2% during the 11th Five-Year Plan.
He said the state government would launch a number of new initiatives and schemes on account of the sizable increase in the plan size.
Deputy chairman Montek Singh Ahluwalia appreciated the state government's efforts in improving pace of development and creating an investment friendly environment.
He said imaginative use of public private partnership in major projects was especially commendable. He also appreciated the state's performance in agriculture, education and power sectors.
Addressing the planning commission members, Modi said there has been a steady rise in developmental expenditure in the state over the last few years due to greater public spending on education, health, nutrition, agriculture and irrigation and by controlling non-development expenditure through restructuring debt, reduction in cost of borrowing and right sizing of staff.
The CM also spoke about increasing instances of the union government violating the Federal Dharma. "The UPA government seems to be clearly encroaching on state's matters and economic freedom. The Centre's agenda is of centralisation of powers and interference in state matters," he said.
He mentioned various instances of Centre's 'injustice' to the state, and dubbed it anti-farmer and anti-poor. He also pointed out several issues about Gujarat which were pending with various union ministries.
Modi said these issues were affecting the pace of development of the state and its financial resources. He complained that
in spite of repeated representations from state government, there was no positive response from the Centre.
