Karnataka sceptical of 8% growth rate

NEW DELHI: Karnataka on Saturday expressed scepticism over eight per cent growth rate in Tenth plan saying achieving average growth of nine per cent in the remaining four years of the plan to make up for the short fall in the current year is "not likely"."Given the scenario, the eight percent average rate of growth for the Tenth Plan period can be achieved only if the average rate of growth of 9 percent is acheived during the remainig four years. This does not seem very likely," Karanataka Chief Minister S M Krishna said at the NDC meeting here to finalise the Tenth Plan.
Drawing attention to Centre''s mid-year economic review, presented in the Parliament, which forecasted a 5.5 percent growth for GDP and 6 percent for infrastrutcure while the agricultural production was expected to grow by only one per cent, Krishna said, "the overall prognosis is gloomy."
The Chief Minister said that doubts had been expressed regarding the targeted growth rate of 8 percent since the Indian economy has registered a growth rate of 5.35 per cent during the Ninth Plan period.
"The Prime Minister has said that we cannot afford not to have significantly high rate of growth, and while I agree with this sentiment, ground realities force us to take a hard look at the projected rate of growth with a degree of scepticism," he said.
"Unless the States are enabled to play their legitimate and rightful role in bringing about necessary policy and institutional changes and strengthen infrastructre facilities, the targets set for the Plan will remain on paper," Krishna said adding that growth of the nation could not be without the growth of the States.
In this context, Krishna said it is key to recognise that allocation of resources must not be based on the dynamics of coalition politics but on objective criteria to harness the development potential prevailing in different regions.
"Therefore the Tenth Five year Plan will have to present fairly radical, innovative strategies to promote growth in the economy," Krishna said.
The best kind of economic growth is that which also fosters human development, poverty reduction, universal primary education, safe drinking water, housing and reducing the gender gap, Karnataka has said.
Stressing that much of the action would lie in the domain of the States when it came to acheiving the targets, he said "Our attempts to improve fiscal position and direct investment for development of social and ecoomic infrastrutcure should be adequately supported by the centre."
In this respect the current sharing pattern of the central assistance to States should offer greater financial incentives to States that have reformed key economic sectors, Krishna said.
Touching upon irrigation segment, Krishna said the State has one of the largest drought prone area in the country and in the long run solution to the problem was inter-basin transfer of surplus water.