BackGujarat economy grows at 12% pa
Gujarat economy grows at 12% pa
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PTI
New Delhi: While India’s economy is expanding at over 8%, Gujarat has ended 2006-07 with a growth rate of more than 12%, drawing praise from Planning Commission Deputy Chairman Montek Singh Ahluwalia.
Agriculture sector posted a robust 10.2% growth, taking the overall economic growth of the state to 12.17% in the last financial year, a Gujarat government press release said here.
The state, which incurred 22% higher expenditure than the original outlay in 2006-07, has been allocated ₹ 16,000 crore for this fiscal. This is an increase of 25% than the approved plan outlay of last fiscal.
Ahluwalia complimented the state for economic reforms and working toward creating an investor friendly environment. He appreciated the revenue surplus budget of the state even after giving tax sops of ₹ 400 crore. He also praised the steps taken for water management programme, the release said.
“Besides being revenue surplus for the last two years, it has also achieved fiscal deficit of 2.51% for 2006-07," he said at a meeting to finalize the Annual Plan of Gujarat for the current year yesterday.
The plan size for 2007-08 at ₹ 16,000 crore includes additional central assistance of ₹ 90 crore for projects of special importance to the state.
Gujarat Chief Minister Narendra Modi said the state has grown at 10.6% for the last four years. From a revenue deficit of ₹ 6,731.54 crore in 2001-02, it recorded a surplus of ₹ 1,802.85 crore in 2006-07, he said.
In the plan, a relief of ₹ 400 crore was granted in taxes for the current year. Allocation for the social sector increased by 41% to ₹ 6,265.05 crore from ₹ 4,426.24 crore last year.
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