YS Sujana Chowdary Updates from Rajya Sabha. Questions Debates and Current News
Thursday, September 8, 2011
Non Special Category States
GOVERNMENT OF INDIA
MINISTRY OF PLANNING
QUESTION NO 3938
ANSWERED ON 08.09.2011
Will the Minister of PLANNING be pleased to satate :-
(a) whether it is a fact that out of 17 Non-special category States only Gujarat, Kerala, Maharashtra, Orissa, Chhattisgarh and Jharkhand crossed the target growth rate of State Domestic Product and all other States remained far below the target, the reasons for this large scale failure;
(b) whether it is not going to widen regional economic imbalances if this trend is not contained; and
(c) the steps initiated by Government in Eleventh Plan to reduce regional economic imbalance and ensure uniform growth?
ANSWER
MINISTER OF STATE FOR PLANNING, SCIENCE & TECNOLOGY AND EARTH SCIENCES
(DR. ASHWANI KUMAR)
(a) & (b): The Eleventh Five Year Plan (2007-12) envisaged an annual average growth rate of 9 percent in Gross Domestic Product (GDP) to be achieved during the plan period. The GDP growth target was disaggregated to State specific Gross State Domestic Product (GSDP) growth targets. The Eleventh Plan growth target along with achievement during first four years of the plan for 17 non- special category States are given at Annexure. The States of Bihar, Chhattisgarh, Maharashtra, Punjab and Uttar Pradesh have realised growth rate higher than the target. Other States have experienced lower growth vis a vis the target which can be attributed to global economic crisis, low growth in agriculture caused by bad monsoon, among others.
The hitherto low performing States such as Bihar, Orissa and Chhattisgarh have started growing faster than the national average and the State of Uttar Pradesh has achieved much higher than the target growth rate. This trend reflects gradual movement towards convergence in economic attainment across States and reduction in economic disparities.
(c): Reduction of inter-state disparities has always been the priority of development policy. The policy instruments for minimising the inter State disparity include plan and non-plan transfer of resources from the Centre to States favouring less developed States, tax incentives for setting up of private industries in the backward regions, etc. A number of programmes have also been initiated to reduce income disparity between States. These include Backward Regions Grant Fund (BRGF, which includes the district component covering 250 backward districts, special plan for Bihar and the KBK districts of Orissa, the Integrated Action Plan for 60 tribal and backward districts and the drought mitigation package for Bundelkhand), Hill Area Development Programme/Western Ghats Development Programme and Border Area Development Programme, etc. In addition, several ongoing Centrally Sponsored Schemes and State specific schemes during the Eleventh Plan are expected to accelerate the growth rate of GSDP of various States.
Will the Minister of PLANNING be pleased to satate :-
(a) whether it is a fact that out of 17 Non-special category States only Gujarat, Kerala, Maharashtra, Orissa, Chhattisgarh and Jharkhand crossed the target growth rate of State Domestic Product and all other States remained far below the target, the reasons for this large scale failure;
(b) whether it is not going to widen regional economic imbalances if this trend is not contained; and
(c) the steps initiated by Government in Eleventh Plan to reduce regional economic imbalance and ensure uniform growth?
ANSWER
MINISTER OF STATE FOR PLANNING, SCIENCE & TECNOLOGY AND EARTH SCIENCES
(DR. ASHWANI KUMAR)
(a) & (b): The Eleventh Five Year Plan (2007-12) envisaged an annual average growth rate of 9 percent in Gross Domestic Product (GDP) to be achieved during the plan period. The GDP growth target was disaggregated to State specific Gross State Domestic Product (GSDP) growth targets. The Eleventh Plan growth target along with achievement during first four years of the plan for 17 non- special category States are given at Annexure. The States of Bihar, Chhattisgarh, Maharashtra, Punjab and Uttar Pradesh have realised growth rate higher than the target. Other States have experienced lower growth vis a vis the target which can be attributed to global economic crisis, low growth in agriculture caused by bad monsoon, among others.
The hitherto low performing States such as Bihar, Orissa and Chhattisgarh have started growing faster than the national average and the State of Uttar Pradesh has achieved much higher than the target growth rate. This trend reflects gradual movement towards convergence in economic attainment across States and reduction in economic disparities.
(c): Reduction of inter-state disparities has always been the priority of development policy. The policy instruments for minimising the inter State disparity include plan and non-plan transfer of resources from the Centre to States favouring less developed States, tax incentives for setting up of private industries in the backward regions, etc. A number of programmes have also been initiated to reduce income disparity between States. These include Backward Regions Grant Fund (BRGF, which includes the district component covering 250 backward districts, special plan for Bihar and the KBK districts of Orissa, the Integrated Action Plan for 60 tribal and backward districts and the drought mitigation package for Bundelkhand), Hill Area Development Programme/Western Ghats Development Programme and Border Area Development Programme, etc. In addition, several ongoing Centrally Sponsored Schemes and State specific schemes during the Eleventh Plan are expected to accelerate the growth rate of GSDP of various States.
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