The Planning Commission on Wednesday approved a plan size of Rs 47,000 crore for Karnataka for the year 2013-14, up 11.8% from the previous fiscal.
The plan size was discussed here in a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Karnataka Chief Minister Siddaramaiah.
"We have approved plan size of Rs 47,000 crore. In addition to that, through the normal central assistance programme, about Rs 10,000 crore will go into Karnataka to help engage development," Ahluwalia told reporters after the meeting.
Ahluwalia said Karnataka has good expenditure realisation and it can play an important role in giving lead to other states in introducing technology for improving governance.
However, he said more focused attention was needed in agriculture and infrastructure. Public private partnership in the state needed to be encouraged to expedite development, he added.
Ahluwalia said the state's growth rate had slowed down recently and was lower than the national average.
"The new government should work out a strategy to take maximum advantage when the economy is on recovery path. Special attention is needed to give necessary impetus to education and health sectors," he said.
State chief minister Siddaramaiah said several initiatives are being taken, aimed at impacting the lives of the poor and marginalised people.
"These include enhancing the milk subsidy from Rs 2 to Rs 4 per litre. This will benefit 7.5 lakh milk producing farmers in the state. The majority of these farmers are small and marginal. The unit cost of rural housing has been raised from Rs one lakh to Rs 1.50 lakh. Subsidy for rural housing has been raised from Rs 75,000 to Rs 1.2 lakh," Siddaramaiah said.
He said the state was committed to provide adequate outlays for the sectors that contribute significantly to improving Human Development Indices, especially education, health, women and child development, social welfare, housing water supply and sanitation, and rural development.
"Systemic reforms in each of these sectors are being initiated to improve outcome indicators," he added.
He also said the Centre should help the state government in strengthening infrastructure for post-harvest facilities, restore custom duty on raw silk to 30 per cent to prevent farmers from opting for distress sales and in helping marketing surplus milk.