State plan for FY04 pegged at Rs 12,050 cr

NEW DELHI: The core plan for Maharashtra for ’03-04 was finalised at Rs 12,050 crore at a meeting between the state chief minister Sushil Kumar Shinde and Planning Commission deputy chairman KC Pant, here on Tuesday.
Commenting on the fiscal performance of the state during ’02-03, Mr Pant said there was a huge shortfall in utilisation of the approved outlay during the year due to the state’s failure to raise funds from the market by the issue of bonds and debentures. The balance from current revenues (BCR) of the state has deteriorated further according to the revised estimates of Annual Plan ’02-03. Mr Pant said effective steps on both the expenditure and revenue sides are required to improve the BCR.
Apprising the commission of the financial performance of the state, Mr Shinde said that large borrowings of the past and increasing fiscal deficit and liabilities have put immense pressure on resource generation. The state was now taking a number of steps to control the situation such as measures to boost tax and non-tax revenue and curtailing of salary related expenditure were being taken, he said.
A fiscal responsibility and budget management bill had been introduced, he added.
Mr Shinde sought a special assistance for drought relief in view and special grant of Rs 1,335 crore per annum for the next five years to improve the infrastructure in Mumbai city and to solve the slum problem in the metropolitan.
He further stated that in view of fast expansion of Mumbai, the Centre should consider sanction of metro rail and to provide financial assistance for taking up the project on priority basis. The chief minister also sought financial assistance for protection of mangroves in Mumbai, extension of thermal power projects at Parli and Paras.
He wanted the Centre to compensate the state for constructing Mumbai-Pune express highway ahead of schedule with its own resources. This section would become the part of Mumbai-Bangalore highway under the Golden Quadrilateral Programme.