The State's Annual Plan size was fixed following a meeting between the Deputy Chairman of the Planning Commission Mr K.C. Pant and the West Bengal Finance Minister, Dr. Ashim Dasgupta in Delhi on Tuesday. Dr. Dasgupta expressed satisfaction over the Planning Commission agreeing to a much bigger Annual Plan size.

Participating in the discussions earlier, Mr Pant lauded West Bengal's performance in the spheres of agricultural production, education of the girl child and the raising of the standard of life of the people in general of the State. He, however, raised questions on the State's fiscal health, about delayed repair of the highways etc. Mr Pant also referred to the financial weakness of the West Bengal State Electricity Board.

On behalf West Bengal, Dr Dasgupta explained to the Planning Commission that the financial arrangements between the Centre and the States inhibited smooth flow of funds and Mr pant appeared convinced of the State's arguments.

Dr Dasgupta also said that West Bengal had set up a record in foodgrains productions too. While the all-India growth rate figure in food production in 1998-99 was a low 2.6%, West Bengal set up enviable record of 4.5% during the same year. The per hectare production of foodgrains in West Bengal was higher than the all India figure. Rate of implementation of the schemes in the Annual Plan in the previous year was also significant -- as much as 98%.

For the implementation of the Annual Plan the Centre will provide 17% of the funds as per the amended Gadgil formula, and on other counts, another 7% to West Bengal. The remaining 76% of the resources will have to be mobilized by the State internally. As much as 35% of the Annual Plan funds for the current year have been earmarked for power generation, 12% for road construction and road repair, 8% each for health and municipal development and 6% on education. The remaining 4% of funds will be spent on miscellaneous.

The West Bengal Finance Minister laid stress on decentralisation of plan implementation on a larger scale this year in the State. The District Planning Committees will be given larger responsibilities in executing schemes. In rural areas the panchayat bodies will be provided funds to undertake Plan schemes. Responsibilities for Plan implementation will have to be shared by the municipalities in the urban areas.

According to Dr. Dasgupta, plans for power development will be drawn at the State level, but the district level bodies will take care of its distribution. Emphasis will also be laid on reducing transmission less of electricity, although such transmission loss in West Bengal is lower than the all India average of 20%. In the State transmission less comes to about 19%.

Dr. Dasgupta was highly critical of the performance of the nationalized banks in financing development plans in West Bengal. These banks, he said, had adopted a negative approach towards financing the I.R.D.P. schemes. Upto December 0.176 million schemes were submitted to these banks. Out of these the banks had so far sanctioned loans in respect of 80,000 schemes only.

On this category of schemes the Centre and the State governments provide 25% of the funds and the banks the remaining amount. The banks dilly-dally in sanctioning the loans. In the matter of credit-deposit ratio of the banks, the picture was equally dismal in West Bengal, Dr Dasgupta said. The figure was 43% in the urban areas and in the rural areas it was a poor 30%, he said.