Kerala has proposed an outlay of Rs. 11,030 crores for its Annual Plan for 2011-12, representing an increase of 10 per cent over previous year’s target.
The Plan outlay, which was finalised at a full Planning Board meeting presided over by Chief Minister V S Achuthanandan here on Tuesday, lays thrust on the social sector covering comprehensive health insurance, new schools to implement the Right to Education Act, higher remuneration for various weaker sections and a 10 per cent of the total plan outlay for the Women Component Plan.
Substantial outlay has been made for infrastructure such as roads and bridges, Kannur airport, Inland water transport and Vizhinjam Deep Sea water International Container Terminal, now being developed by the State Government.
Addressing a press conference soon after the meeting, Mr. Achuthanandan said the State had proposed a higher plan outlay for 2011-12 despite the fiscal strain of meeting the outgo on implementing the Pay Commission recommendations. The outlay for the first four years of the 11th Five Year Plan was Rs. 33,595 crores, which along with the proposed outlay for 2011-12, far exceeds the 11th Plan target of Rs. 40,422 crores. The Annual Plan will be finalised during the discussion with the Planning Commission in the last week of January.
The Chief Minister said expenditure as percentage of outlay for the first three years of the 11th plan has been 82, 93, and 87 respectively. In the current year, the plan achievement would peak at 90 per cent and sustained in the coming year. Up to November 30, the plan expenditure had touched 37 per cent. In short, substantial plan funds have been injected into the Kerala economy during the 11th Plan period, which he said, was no mean achievement in the context of neo-liberal policies that produces public expenditure deflation. The plan targets have been achieved because of the prudent management of State finances under the LDF government, he said. It has broken the cut-spending mentality engendered by neo-liberalism, he said.
The Chief Minister, who was accompanied by the Planning Board vice-chairman Prabhat Patnaik, member K N Harilal and member secretary Teekaram Meena at the press conference, pointed out that social sector outlay is often looked upon only as a subsidy or transfer as distinct from productive investment and that an increase in it is considered as counter-productive. Social sector outlay, he said, was not only welfare augmenting for the poor and the working people of the State, but also contributed to an increase in productive capacity, both from the supply and demand sides. On the supply side, creation of an educated and healthy work force augments productive capacity, while on the demand side, the improved living conditions of the working people expands the home market, a part of which is at least captures by local producers through larger investments, he said.
The Annual Plan has given priority to Kuttanad development, revival of Public Sector Undertakings and Kudumbashree. The novel schemes introduced in the 2010-11 Plan such as the Urban Employment Guarantee Scheme and the income support scheme will be continued in 2011-12 and sufficient funds have been earmarked for these, he said.
With regard to agriculture, the Chief Minister said there was every reason to feel optimistic considering the fact that cultivation had taken place in 50,000 hectares of land, with paddy output touching 1 lakh tonnes. In the case of vegetable production, the State was inching towards self-sufficiency, he added.
In reply to a question on the propagation of genetically modified seeds, Mr. Achuthanandan made it clear that the State Government did not propose to change its stand on this issue and continued to oppose it.
The Planning Board hopes to mobilise resources to fund the annual plan from existing revenues and other central schemes. However, a lot depends on the recommendations of the State Finance Commission, which is expected to submit its recommendations soon, Mr. Harilal said.
