Annual Plan size for Bihar for the year 2007-08 was approved today at a meeting between the Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia and Chief Minister of Bihar, Shri Nitish Kumar. The Plan outlay was agreed at Rs.10200 crores, which includes additional Central assistance of Rs.70 crores for projects of special importance to the State. Deputy Chairman, Planning Commission, complimented the State for catalyzing development process and said that momentum was picking up. He assured State Government of every possible support from the Commission in maintaining the momentum of growth. Initiatives aimed at bridging gap in infrastructure sector specially road development and power sector reforms were appreciated. He said that Commission would seek opinion of all State Governments on guidelines relating to various Central initiatives so as to ensure that they do not come in the way of implementation. Appreciating the State's efforts aimed at improving governance, he pointed out that the Commission would shortly approach State Governments to conduct study on public response to various governance initiatives in major cities. He said the State had taken number of positive initiatives which include administrative reforms, decentralization and simplification of procedures and delegation of powers. He said actions initiated for implementation of various mission mode programmes of the Union Government on priority have led to acceleration in Plan expenditure. Attention was drawn to high unemployment rate and distribution losses in the power sector. Improving sanitation needs focused attention and more thrust should be given to tourism promotion. The State should give more attention to creating awareness about HIV / AIDES and malnutrition problem. The Chief Minister said that poverty eradication and human development would be the main focus of the State Government and sought Planning Commission support in expediting programmes aimed at infrastructure development, irrigation and poverty eradication. He said private sector interest in investment was growing but initially public investment would be needed to encourage this trend. On major initiatives taken by the State Government, the Chief Minister said the process of fiscal reforms has been started. This includes enactment of Bihar Fiscal Responsibility and Budget Management Act. Policies aimed at raising non-tax revenue are being pursued. Norms have been prescribed for prioritization of capital expenditure to provide impetus for economic growth, poverty reduction and improvement of human welfare. He said financial powers have been decentralized. Departments have been authorized to sanction schemes up to Rs.20 crores. That system has replaced sales tax. He said the State government has proposed an outlay of Rs.58310 crores for the Eleventh Plan an increase of nearly 155 per cent. It proposes to have external aid on rural livelihood project from World Bank. Other programmes on which it will seek external assistance include flood forecasting, State highway project and Nalanda International University. He said Department of Welfare will ensure flow of funds to Tribal Sub-Plan and SC Sub-Plan, which will get Rs.525.50 crores and Rs.11202.03 crores respectively during the Eleventh Plan period. The Chief Minister said to promote infrastructure development, State highway authority is being set up and unbundling of Bihar State Electricity Board would be carried out during next fiscal. Distribution is being outsourced. He said the State Government has approached the Finance Ministry for providing policy development loan, which it needs for debt restructuring, PSU reforms and civil services reforms.
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