Chief Minister in Delhi to discuss annual plan

Chief Minister V.S. Achuthanandan will on Monday hold discussions with the Planning Commission on the State’s Annual Plan for 2010-11.

The Chief Minister left for Delhi from Kozhikode Sunday morning. Discussion on the Annual Plan was held up this year because of the delay in the Finance Commission submitting its report.

Usually, the Plan is finalised before presentation of the Annual Budget.

The State has proposed a Plan of Rs.10,000 crore for the current year. This is 12.10 per cent higher than last year’s Plan of Rs. 8,920 crore. It is hoping that the Centre would agree to increase the one time Additional Central Assistance from Rs. 110 crore last year. If that happens, the proposed Plan size would go up marginally.

The Plan proposes three novel schemes — an urban employment guarantee scheme, an income support scheme for traditional workers) aimed at checking the fall out of Indo-ASEAN free trade agreement) and a scheme for reaching energy to outlaying hamlets of tribals and other marginalised sections. The Commission is expected to comment on these and, as usual, on the sectoral allocations proposed.

Apart from additional central assistance, continuation of fiscal stimulus packages and borrowings from open market might also figure during the discussions. The State had been complaining that the Central government was stingy about granting more funds or allowing the State to borrow more from the market. However, there is little chance of a raise of borrowing limit at this point as the Union Budget had already been presented and approved.