In view of the cut in Central funds under various Central Sponsored Schemes, the State Government has apparently decided to increase the Annual State Plan size to nearly Rs52,000 crore.
In the main Budget for 2015-16, the State Plan had been finalised at Rs44,150 crore, of which Rs40,000 crore was for Government spending and Rs4,150 crore for Public Sector Undertakings (PSU)s.
During the first half of the current fiscal 2015-16, the Government has registered a negative growth of 11 per cent in the Central funding source. This dearth of funds needs to be met by the State and hence the State Plan hike is mooted, said an official of the Finance Department.
Unless the State Government pumps in funds from State Plan, a number of developmental projects would suffer and it would have adverse impact on the economy of the State, said the officer.
Accordingly, the State Plan has been revised and an extra amount of Rs7,800 crore has been provided, said sources.
With a huge push in State Plan, the State Government is trying hard to generate more resources so that allocation on Capital Outlay will be more and several crucial infrastructure projects can be taken up from State Government’s own resources.
During 2014-15, the Annual State Plan size was Rs40,810 crore out of which Rs2000 crore was meant for State PSUs.
Now, the State Government expects to earn Rs4000 crore from the PSUs and the rest Rs4,000 crore from its own sources to meet the increased amount of the State Plan.
Earlier in the State Budget passed on March 31, 2015 in the State Assembly, an amount of Rs2,700 crore of RIDF loan was to be availed by the State Government.