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States sceptical about 8% growth; fiscal health major issue
New Delhi, Dec 21: Reeling under acute financial pressure and lack of fresh revenue generation avenues, states today expressed scepticism about attainment of an ambitious eight per cent economic growth target during the tenth plan and listed fiscal deficit and slow pace of reforms as the prime area of concern.
New Delhi, Dec 21: Reeling under acute financial pressure and lack of fresh revenue generation avenues, states today expressed scepticism about attainment of an ambitious eight per cent economic growth target during the tenth plan and listed fiscal deficit and slow pace of reforms as the prime area of concern.
Notwithstanding the optimism expressed by Prime Minister Atal Bihari Vajpayee at the meeting of the National Development Council about the feasibility of tenth plan growth target, the congress ruled states severly criticised the Centre for not giving adequate resources and alleged that political considerations came in the way. "Politicisation of the allocation decisions in an open economy will only be detrimental to healthy growth," Karnataka chief minister S M Krishna said adding that attaining 8 per cent economic growth was a daunting task considering large fiscal deficits and lack of resources.
Left ruled West Bengal held Centre responsible for making states' finances poor by implementing fifth pay commission and asked the Centre to address the issue of states' financial health by taking new initiatives to provide debt relief. Tamil Nadu was perhaps the only non-BJP state which came out strongly in support of Centre's growth targets for the tenth plan period even as it criticised missing of the targets in the previous plan period especially in agriculture and manufacturing sectors.
Tamil Nadu chief minister J Jayalalithaa said second generation reforms in the manufacturing sector and higher capital formation in the agricultural sector were key areas for attaining higher growth rates.
States also pointed out that lower growth rate in the current financial year, estimated at about 5.5 per cent, would put tremendous pressure as it would be required to achieve nine per cent growth rate in the remaining four years to achieve the plan target.
Delhi, ruled by Congress, pointed out the slow pace of economic reforms and called for introspection whether the eight per cent economic growth was actually achieveable or not.
Drought-hit Andhra Pradesh demanded immediate financial assistance from the Centre as a relief measure to achieve the economic targets set for the tenth plan.
The Chief Minister of Andhra Pradesh supported Centre on its economic policies and asked it to implement the policies of disinvestment, reforms in financial, legal, labour and administrative areas vigorously.
He, however, warned the Centre about the impact of globalisation and WTO free-trade regime on the economy asking it to take note of the situation while formulating the tenth five year plan.
States also drew Centre's attention to the problems which may confront them while implementing Value Added Tax (VAT) structure from next financial year.
Bureau Report
Notwithstanding the optimism expressed by Prime Minister Atal Bihari Vajpayee at the meeting of the National Development Council about the feasibility of tenth plan growth target, the congress ruled states severly criticised the Centre for not giving adequate resources and alleged that political considerations came in the way. "Politicisation of the allocation decisions in an open economy will only be detrimental to healthy growth," Karnataka chief minister S M Krishna said adding that attaining 8 per cent economic growth was a daunting task considering large fiscal deficits and lack of resources.
Left ruled West Bengal held Centre responsible for making states' finances poor by implementing fifth pay commission and asked the Centre to address the issue of states' financial health by taking new initiatives to provide debt relief. Tamil Nadu was perhaps the only non-BJP state which came out strongly in support of Centre's growth targets for the tenth plan period even as it criticised missing of the targets in the previous plan period especially in agriculture and manufacturing sectors.
Tamil Nadu chief minister J Jayalalithaa said second generation reforms in the manufacturing sector and higher capital formation in the agricultural sector were key areas for attaining higher growth rates.
States also pointed out that lower growth rate in the current financial year, estimated at about 5.5 per cent, would put tremendous pressure as it would be required to achieve nine per cent growth rate in the remaining four years to achieve the plan target.
Delhi, ruled by Congress, pointed out the slow pace of economic reforms and called for introspection whether the eight per cent economic growth was actually achieveable or not.
Drought-hit Andhra Pradesh demanded immediate financial assistance from the Centre as a relief measure to achieve the economic targets set for the tenth plan.
The Chief Minister of Andhra Pradesh supported Centre on its economic policies and asked it to implement the policies of disinvestment, reforms in financial, legal, labour and administrative areas vigorously.
He, however, warned the Centre about the impact of globalisation and WTO free-trade regime on the economy asking it to take note of the situation while formulating the tenth five year plan.
States also drew Centre's attention to the problems which may confront them while implementing Value Added Tax (VAT) structure from next financial year.
Bureau Report