Centre paves path for UP dreams, allocates Rs. 57,800 cr
The day Samajwadi Party chief Mulayam Singh Yadav proposed the name of UPA candidate Hamid Ansari for the post of vice president, Uttar Pradesh - the state ruled by his party - got an impressive hike of over 21% in its annual plan.delhi Updated: Jul 18, 2012 20:35 IST
The day Samajwadi Party chief Mulayam Singh Yadav proposed the name of UPA candidate Hamid Ansari for the post of vice president, Uttar Pradesh - the state ruled by his party - got an impressive hike of over 21% in its annual plan.
With the planning commission allocating Rs. 57,800 crore for the state including Rs. 800 crore as special assistance for Khumb, it is the maximum increase in the annual plan for the state in the last five years.
HT had first reported that the state is set to get a hike of over 20% in its annual allocation last week.
UP chief minister Akhilesh Yadav said with the allotment, the state government will be propelled to do well, and that he expected more support from the commission in coming days.
"I feel the allotment, along with the Rs. 20,000 crore for central sponsored schemes, will lead to better development of the state," he said.
Buoyant by good hike, Yadav told the panel that the state would strive to achieve the target to increase the growth target to 10% by 2016-17, the terminal year of the 12th plan.
This was despite plan panel deputy chairperson Montek Singh Ahluwalia stating that the commission was set to downgrade the economic growth target for the 12th plan from 9% to 8-8.5%.
Yadav felt that the state has ability to achieve 10% growth as his predecessor - Mayawati of BSP - recorded an impressive growth of 6.9%.
"If she could do it why can't we," was his reply to Ahluwalia's doubts over meeting the target.
Ahluwalia was also impressed by the state government's target to attract private investment worth Rs. 12,00,000 crore in the next five years and said it would improve the overall economic situation of the country.
On the flip side, the panel pointed out that UP's share in the national Gross Domestic Product has dipped from 8.8% in 2004-05 to 8% in 2011-12 and number of poor in absolute terms have also increased.
"Investment climate and ease of doing business is unattractive as compared to other states," the panel pointed out.
Although the panel complimented the state government for proposed increase in power tariff, it said electricity problem will persist as there has not been much increase in installed capacity in the state.
The panel suggested that the state government should concentrate on development of social sector and infrastructure to attract private investment.
The planning commission had earlier agreed to provide Rs. 1,000 unemployment allowance to matric pass youth in the age group of 30 to 40 years provided the state government fixes either the income criteria or unemployment allowances for the below poverty line families.
The allowance will cost Rs. 396 crore in the current financial year.
Another ambitious scheme of the state government - to provide tablets to pass-outs of class X and XII --- also has the panel's in-principle approval with an allocation of Rs. 975 crore likely to be provided in the annual plan expected to be of Rs. 56,000 crore.
It would be about 19.15% higher than the plan of Rs. 47,000 crore for the financial year 2011-12.
In addition to this, the state government's renewed emphasis on social sector would get a go-ahead. A new pre-matric scholarship for the scheduled caste students in on the anvil.
The panel is expected to double the outlay for welfare of Other Backward Classes (OBCs) and minorities in the annual plan.
First Published: Jul 18, 2012 19:54 IST