NAGPUR, JANUARY 28: Chief Minister Vilasrao Deshmukh today said the State Government has no other alternative but to downsize the State budget in order to reduce the revenue deficit, which is pegged at Rs 7,500 crore.
With nearly 73 per cent of the earnings being spent on non-planned expenditure, the State Government is left with the only choice of reducing the plan size in order to contain the deficit, Deshmukh said. He said that at present, it was not possible to curtail the non-planned expenditure, but the State will have to find measures to reduce it substantially.
Imposing fresh taxes, he said, was also not a possible alternative, keeping in view the Union Government policy of rationalisation of the tax structure throughout the country. But he hinted at giving up more subsidies. Abolition of subsidy on foodgrains for the Above Poverty Line (APL) population and hike in prices of milk provided through Government milk schemes, were some of the steps in this direction, Deshmukh said while speaking to the newsmen at Ramgiri on arrival in the city on Thursday.
Earlier, in reply to a question, Deshmukh said that severe financial crunch was the sole reason behind the delay caused in the payment of dues to farmers against cotton purchase. The State has borrowed money from co-operative banks to allocate to cotton growers, he said.
The Chief Minister, who also shed light on the tight financial position of the State, justified the decision of the State Electricity Board to offer huge concessions for the payment of electricity bills to the powerloom in different pockets of the State. “At least, we can recover the principal amount and part of the interest accrued on it,” Vilasrao Deshmukh said.
When pointed out that why no such concession was being given to the handloom sector and particularly the cooperative spinning mill in the city, Deshmukh assured he would look into the matter and take the necessary steps.
Replying to a question as regards the demand made by the chairman of the Vidarbha Statutory Development Board to scrap the Ranganathan Committee Report which is based on the observations of the Indicators and Backlog Committee, Deshmukh said that both of the reports have not come before the Cabinet for discussion. A decision would be taken only after the two reports are submitted for discussion, he said.
Deshmukh also denied that the much delayed development plan for Nagpur city had dereserved several playgrounds and residential areas. The State has invited objections on the plan, he said, and added that the objections would be incorporated in the final plan.
He also told that the State Government was firm on its Cabinet decision to name the Yavatmal airport after the late Jawaharlal Darda and added that there was no question of going back on the decision. The programme to name the aiport has been postponed due the ideal code of conduct which is under implementation in the area for gram panchayat elections.
Deshmukh also informed that he had met the Union Minister for Aviation, Sharad Yadav recently and proposed privatisation of the airport at Nagpur, besides providing it an international status.