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Slow spender Rajasthan set for the largest ever plan outlay

Even as Rajasthan government struggles to meet its plan target this fiscal, it is yet again set for the largest ever plan outlay for 2010-11.

, ET Bureau|
Jan 05, 2010, 09.29 PM IST
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JAIPUR: Even as Rajasthan government struggles to meet its plan target this fiscal, it is yet again set for the largest ever plan outlay for 2010-11. The planning commission, in principle, has given its nod to the largest ever Rs. 22,422 crore outlay, which is 20% more than the previous annual plan size of Rs 18,634 crore.

According to the planning department, top priority has been given to power sector followed by urban development and housing and rural development in the proposed plan outlay. “We have proposed Rs 12,434 crore for power sector as against last year’s allocation of Rs 7,484 crore. Likewise we have proposed Rs 1303.32 crore for rural development, which is Rs 63 crore less than the previous year’s allocation,” the official said.

The slow pace of Rajasthan government makes the size of the plan outlay look massive. Against previous year’s outlay of Rs 18,634 crore, the state government has managed to spend a meager Rs 6713 crore in the first six months of the current fiscal, which is 36% of the total outlay. The low spending of the state government has hit the development works badly.

“The revenue is declining while the expenditure is rising. Revenue receipts have dipped by 0.36% while revenue expenditure has risen by 3.61% leaving no option for the government but to borrow. “The state government can borrow up to 4% of their GDP. It has borrowed Rs 7058 crore in the first six months as against the estimated borrowing of Rs 8419 crore for this fiscal. More than one-third of the borrowed money is being spent on paying salaries, pension, loan and interest liabilities which is likely to pose a big problem in the developmental activities of the state government,” the official said.
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