Shinde’s cuts in non-plan expense earns him a pat

On the state’s performance during 2002-03, Pant said a shortfall was expected in utilising the approved outlay due to the state’s failure to raise funds through bonds and debentures. He suggested effective steps to improve the balance from current revenues as it had deteriorated further as per revised estimates of last annual plan and also stressed the need for population stabilisation. Expressing concern over poverty in the state, he said the spatial distribution needs to be studied closely and reasons identified. Shinde said the large borrowings in the past and increasing fiscal deficit have put immense pressure on resource generation.

Shinde said that while Rs 1000 crore was needed to fight the drought, the Centre had given a grant of Rs 40 crore only, and urged for a special assistance of Rs 550 crore. He asked the Centre to sanction a metro rail project for Mumbai and provide funds for the same on priority basis.