Gujarat needs to do more on social sector: Montek Singh Ahluwalia; Narendra Modi retorts

NEW DELHI: After securing an approval for a plan size of Rs 59,000 crore for this fiscal, Gujarat Chief Minister Narendra Modi today sparred with the Centre over social sector development in the state as he countered Planning Commission's assessment that lot more needs to be done.

On his first trip to the national capital after being made BJP's election campaign head, Modi got the nod for Rs 59,000 crore Plan expenditure, 15.7 per cent more than the outlay for 2012-13. The state was keen on a plan size of Rs 61,000 crore for 2013-14.

Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters in presence of Modi that Gujarat needs to do more in social sectors.

"(There was)..a lot of discussion on the social sector. I think generally it has been our view that Gujarat needs, in order to bring its social sector performance upto the economic size, to have some special attention to this area," he remarked after the plan meeting with Modi.

When his turn came, the Gujarat Chief Minister retorted back saying the state spends 42 per cent of its budget on social sector with a moto of "Sabka Saath, Sabka Vikas."

"The funds would help upliftment of all sections of the society including scheduled caste, down trodden, exploited and tribal. We want to have all the sections of the society to get the benefits of growth," he said.

The Chief Minister cited Gujarat's growth story to counter Ahluwalia. "Gujarat has played a crucial and big role in development of India. In terms of contribution and in terms of GDP, we are among the highest contributers," he added.

Ahluwalia stated that Gujarat needs special attention towards its social sector performance so that it can commensurate with state's size of economy. "Gujarat is one of our better performing states. In terms of economic growth we have noted that the performance has been good in Gujarat," he added.
The Plan size was finalised here at a meeting between the Commission's Deputy Chairman Montek Singh Ahluwalia and Gujarat Chief Minister Narendra Modi. The Planning Commission had approved a Plan outlay of Rs 51,000 crore for the 2012-13 for the state.

"We have agreed to a Plan size including the public sector enterprises (expenditure) of Rs 59,000 crore," Ahluwalia told reporters after the meeting here.

According to him, the central plan assistance to the state includes Rs 6,000 rpt Rs 6,000 crore under the centrally sponsored schemes and about Rs 4,000 crore as direct aid to the state. Ahluwalia said, "Gujarat is one of our better performing states. In terms of economic growth we have noted that the performance has been good in Gujarat."

"State has raised a number of issues on which the central government should act like slow decision making, faster action for better development," he added.

During the meeting when state asked for greater flexibility to incur expenditure under the CSS, Ahluwalia informed the Chief Minister that "Planning Commission is taking a note to the Cabinet which I hope will be considered possibly tomorrow to introduce a lot of flexibility in each CSS (centrally sponsored scheme)."

Expressing satisfaction over the Plan outlay, later Modi said, "Originally we had thought about plan size of Rs 58,500 crore Plan size (for 2013-14). But Planning Commission thinks that Gujarat is more capable, it should grow more so it has approved Rs 59,000 crore."