Dhumal seeks financial package from planning commission

Shimla: Chief minister Prem Kumar Dhumal has asked the planning commission to provide special financial package to the state for filling the void caused due to reduced special plan assistance sanctioned and capping borrowings at a lower limit.

Presiding over a review meeting about planning, development and 20 point program, the chief minister said a shortfall of Rs 2314 crore recommendation by the 13th Finance Commission, lowering the special plan assistance to Rs 1000 and capping loans at Rs 1647 crore for 2011-12 was affecting the states annual plan.

Against an allocation of Rs 10,202 crore by the 12th Finance Commission the 13th Finance commission had provided only for Rs 7888 crores.

For finalizing the current annual plan, the loan limit has been capped at Rs 1947 against the previous year loan limit of Rs 1911 crores and against a demand of Rs 1500 for special plan assistance only Rs 1000 crore has been provided for, he said

Taking into account the gross domestic product based upon current market prices, the states loan limit should have been Rs 2034 crore, he added.

The planning commission had been urged to provide special central assistance or allow the state to borrow additional loans from the market to match the financial assistance shortfall said Dhumal.

The states annual plan of Rs. 3,300 crore had been approved for the current financial year and it needed to be ensured that it is fully utilized. Against a plan of Rs 3000 crore for 2010-11, the state spent Rs. 3104.09 crore rendering a 101.46 % achievement.

Besides the chief minister, horticulture minister Narinder Bragta, health minister Rajiv Bindal, chief secretary Rajwant Sandhu, MPs, MLAs and senior officials participated in the meeting.

As Editor, Ravinder Makhaik leads a team of media professionals at Hill Post. Spanning a career of over two decades in mass communication, as a Documentary Filmmaker, TV journalist, Print Media journalist and with Online & Social Media, he brings with him a vast experience. He lives in Shimla.

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