States doubt achievement of 8% Tenth Plan growth target

Delhi Chief Minister Sheila Dikshit said the target ‘not do-able’ due to the faltering pace of economic reforms. ‘‘There are distinct murmurs, at least in some quarters that the growth of this order is not doable,’’ she said.

The West Bengal government while strongly criticising the Centre for implementing the Pay Commission that was the main culprit ruining State finances, said that eight per cent growth target might not be achieved if the acute problems in fiscal situation of States was not redressed.

‘‘The achievement of the targets as fixed for States in the Tenth Plan obviously lies in the effective redressal of the fiscal problem the States have been passing through. Else, the entire Tenth Plan projections might be upset,’’ the State’s Development and Planning Minister Nirupam Sen said at the meeting in the absence of West Bengal Chief Minister.

Karnataka Chief Minister S.M. Krishna also expressed his doubts about the target saying ‘‘Given the scenario, the 8 per cent average rate of growth for the period can be achieved only if the average rate of growth of 9 per cent is achieved during the remaining four years. This does not seem very likely.’’

Rajasthan CM Ashok Gehlot also dismissed the targets as ‘‘too ambitious clearly verging on the improbable’’ and demanded change in Gadgil Formula for grant of central assistance under the annual plans.

Punjab Chief Minister Amarinder Singh cautioned the Centre that the targets set under the Plan should not be mere slogans, but should be backed by carefully designed projects which are fully funded. Madhya Pradesh Chief Minister Digvijay Singh was considerate while asking the Centre to concentrate on development of backward States saying ‘‘In order to achieve a growth rate of 8 per cent, it is important to concentrate on backward states like UP, MP, Bihar and Orissa where levels of physical and social infrastructure are very low and impose constraints on economic growth.’’ However, Tamil Nadu Chief Minister Jayalalithaa strongly supported 8 per cent target even as she lamented the decline in growth in Ninth Plan period. She also came down heavily on the States lagging behind in utilising central assistance and said ‘‘rewards and incentives should be limited to those who perform and there is no case for handholding laggard states any more.’’