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It was approved in a meeting between Maharashtra Chief Minister Vilasrao Deshmukh and Planning Commission Deputy Chairman Montek Singh Ahluwalia in Delhi. State Finance Minister Jayant Patil and senior state officials also attended the meeting.
This is Rs 3,000 crore (Rs 30 billion) more than 2005-06. "After last year's fiasco, when the Planning Commission asked the state government to scale down its annual plan outlay from Rs 18,000 crore (Rs 180 billion) to Rs 11,500 (Rs 115 billion), the state government prepared a conservative plan this time," said sources.
The Planning Commission took this decision as the state's revenue receipts have increased, and also it would be getting an additional grant from the Centre for various schemes. The state has also managed to considerably reduce its interest burden.
The state would get Rs 700 crore (Rs 7 bilion) from Central government under National Urban Renewal Mission for urban infrastructure projects for five cities.
Besides Nanded will receive a special package of Rs 125 crore (Rs 1.25 billion) from the Union government to facilitate the 500th birth centenary of the Guru Gobind Singh.
The three statutory development boards, Marathwada, Vidarbha and the rest of Maharashtra would get Rs 75 crore (Rs 750 million) as a special assistance.
An additional Rs 380 crore (Rs 3.8 billion) would come from the central tax pool. The state would save around Rs 519 crore (Rs 5.19 billion) on interest payment as it has swapped Central debts with higher interest with lower interest debts.
The revenue receipts are likely to increase by Rs 1,500 crore (Rs 15 billion) in FY'06. The reason is substantial rise in revenue through excise and stamp duty.
Of the Rs 2,800 crore (Rs 28 billion) central assistance Rs 1,350 crore (Rs 13.5 billion) would be loan and rest would be a grant. Also, for irrigation Rs 1,400 crore (Rs 14 billion) have been allocated.