Patna,(BiharTimes): In a significant move which has more to do with politics than economics the Annual Plan for Bihar for 2013-14 has been fixed at Rs 34,000 crore, which is 34 per cent higher than the previous fiscal.

This was finalised at a meeting between the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia and Bihar Chief Minister Nitish Kumar in New Delhi on Wednesday. Deputy CM, Sushil Modi, Narendra Narayan Yaday, Minister, Planning and Development and Law, Nitish Mishra, Rural Development minister, Bhim Singh, Minister Rural Works & Panachayati Raj , Hari Kishore Singh, Deputy Chairman, Bihar State Planning Board, along with senior officials of the state participated in the deliberations.

Out of Rs 34,000 crores the state government will arrange Rs. 25381.70 crores (74.76%) from its own resources & market borrowings and Rs. 8618.30 crores (25.34%) from Central Assistance. It is noteworthy that earlier in 2004-05, the share of Central Assistance used to be more than 70% which has now come down merely to 25.34 %. This has been possible by prudent fiscal management and augmentation of its own resources  by the State through wide ranging reforms .

It is noteworthy that plan expenditure of Bihar has gone up from Rs. 4379 crore in 2005-06 to Rs.26351 crore in 2012-13.

This year main development priorities have been on social services, infrastructure, agriculture and allied sectors, irrigation, flood control and energy sector. Out of total outlay, the contribution of social services is Rs. 13802 Cr (40.59%)  Road Sector Rs.5993 Cr (18%), Energy Sector Rs.1790Cr (5.27%), Agriculture & allied Rs. 3383Cr (9.95%) and Irrigation and Flood Control Sector Rs. 2730Cr (8.03%).

Although, special status category was not on the agenda of the meeting, Nitish did raise the issue on a day, when the Centre had already announced a six-member expert committee under the Chairmanship of Chief Economic Advisor Raghuram G. Rajan to define new criteria of backwardness.

Ahluwalia said that growth in the per capita income in Bihar is higher than the national average.

In the total proposed outlay of Rs. 34,000 crore for Annual Plan 2013-14, the share of agriculture sector has been enhanced to 9.99% while that of social services has been enhanced from 36.5% in 2012-13 to 40.59% in the annual plan proposal for 2013-14.

The per capita net income of the State in 2005-06 was Rs 7,749, which has almost doubled to Rs 14,268 in 2012-13.

Nitish, however, raised the issue about timely payment of Central fund. The Centre has agreed to release Rs 12,000 crore through Backward Region Grant Fund during 12th Plan (2012-2017).

This fund is to be used mainly for energy and roads.