Seriously contemplating on a double digit growth in the current financial year 2015-16, State government is exploring ways and means to pump funds for various infrastructure projects to kick-start economic growth. It all started with the draft double digit growth plan prepared by the Planning Department over a period of one year. While the Planning Department is confident that given the current GSDP and growth rate in the State, it is not too difficult a target to achieve by various departments under the mission mode, the Chief Secretary has been seeking the views of the departments on the possibility or otherwise of the vision unveiled by the Planning department.
The current GSDP of the State is estimated at about Rs.5 lakh crore and to achieve 10 per cent growth, the GSDP should grow by at least Rs.50,000 crore over the next year. Rough calculations say that to achieve one per cent growth, Rs.5,000 crore should be spent on various infrastructure projects so that it would generate an income of Rs.15,000 crore in the State across the sectors.
Since the target is to increase the GSDP by another Rs.50,000 crore, the investments into the infrastructure should be in the order of at least Rs.16,000 crore to Rs.17,000 crore , sources said. The question is whether government will be able to generate and attract that kind of public and private sector spending on infrastructure projects that would have a ripple effect across the agriculture, industry and service sectors. Though at present, financial scenario looks not very encouraging vis-à-vis the ambitious growth plans, State is banking on funds assured by the Centre and its own mission mode growth across the sectors. “We are asking departments to come out with action plans to achieve the growth target and give a realistic view in case the target needs to be tone down for some sectors or scaled up for others. After all the Planning Department’s proposals should be in sync with department’s action plans,” a Planning Department official said.
Sources said the targeted growth rate would be proportional to the total capital expenditure in the State. The budgetary allocations for capital city and urban infrastructure would result in more business to the local cement and steel industry, ancillary units, employment generation and more consumption of goods.
The projects are crucial to achieve double-digit growth
