Planning in Karnataka
The British, according to their colonial policies, were encouraging the raising of crops which served as raw material, required for their industrial productions. They introduced American long fibre cotton into Karnataka. The Cotton Boom of the 1860’s (American Civil War days) had its own impact. In the long run it helped in creating cotton processing units. As a result, Cotton weaving not only received a setback, but its massive foreign market was also lost.
The administrative policies of the British helped the expansion of urban centres like Bengaluru, Bengaluru Cantonment, Mysuru, Mangaluru, Davangere, Hubballi, Gadag, Hosapete, Kalaburagi etc, This was due to increased industrial activity and concentration of offices or units like railway workshops. Mangaluru witnessed tile factories started by Basel Mission. During the first half of the 20th century, new towns like Mandya, Bhadravati, Raichur, Harihar, Chikkamagaluru, etc., expanded. New towns saw starting of hotels, giving a fillip to demand for milk in bulk. Mysuru’s economic planners were to start a process of economic activity not seen earlier by raising dams and starting industries and by generating power. The process had been set afoot by Dewan Sheshadri Iyer. In the meanwhile co-operative movement and banking expanded during the first quarter of the 20th century. Beedi rolling, a domestic industry emerged by providing labour to the needy.
Planning in Mysuru
The economic conference (between 1911 and 1931) initiated by Sir M.Visveswaraya in princely Mysuru introduced through his book ‘Planned Economy for India’ has suggested schemes for the development of Industries and thus for the improvement of the State economy. ‘Industrialise or Perish’ was his slogan. Princely Mysuru State was the first State in the country to formulate an economic plan which contained a number of schemes in 1946 at an estimated cost of ` 48.99 crores. Despite this, the State was largely pre-industrialised and under developed at the commencement of the era of planning. Free India later launched a programme aimed at the Welfare State and at the same time developing basic and key industries. Thus came many Central Government industries to Bengaluru and attempts were made to expand irrigation potential by raising the Tungabhadra Dam and other irrigation projects.
Development under plans
First Five Year Plan (1951-56) :
In the first plan the outlay was ` 47.58 crores and the expenditure was ` 40.51 crores in the erstwhile Mysuru State. The major expenditure was ` 15.37 crores for irrigation, ` 10.39 crores for power, ` 4.80 crores for industries and ` 3.60 crores for agriculture. Regarding Physical Progress, ‘Grow More Food’ campaign was popularised. National Extension Scheme was introduced, 4,100 acres of afforestation was achieved and three major and 11 medium irrigation projects were undertaken.
Second Five Year Plan (1956-61) :
The Second plan was revised after State Re-organisation, with an outlay of ` 145.13 crores. The expenditure was ` 142.82 crores. The major expenditure was on irrigation ` 28.27 crores, on power 28.02 crores and on social services ` 32.42 crores. During this plan agriculture production increased. Minor irrigation facility was extended by three lakh acres and three major and 12 medium size projects were taken up for construction at an estimated cost of ` 78.69 crores. Additional power generation went up to the extent of 269.5 Million KW.
Third Five Year Plan (1961-66) :
This was the first comprehensive plan for the economic development of the State, with an outlay of ` 246.22 crores and an expenditure of ` 264.75 crores. About 41 percent was earmarked for better utilization of water and power development, 18.46 per cent for agricultural and allied activities. The per capita expenditure went up to ` 106 as against ` 64.5 in second plan. The important projects under this plan were the Harangi, the Hemavathi, the upper Krishna and the Malaprabha. During the Annual Plan of 1966-67, the expenditure was ` 54.68 crores.
Fourth Five Year Plan (1969-74) :
The main emphasis of this plan was on (a) regional development (b) adoption of district plans. The strategy of the plan included the objectives of achieving a growth rate of 5.6 percent in agriculture. The expenditure incurred was ` 386.82 crores. Regarding achievements, total irrigated area increased from 13.15 lakh hectares in 1969-70 to 15.94 lakh hectares in 1973-74. Installed capacity of power increased from 877.5 MW to 966.6 MW at the end of Fourth Plan. Per capita consumption of energy increased from 82 units to 121 unit, area under agriculture from 10,028,000 hectares to 17,504,000 hectares and food production from 5,63,800 tonnes to 66,41,000 tonnes.
Fifth Five Year Plan (1974-79) :
The main feature of this plan was removal of poverty and attainment of economic self-reliance. The main objectives were
- To achieve a growth of 8.5% per annum, to raise the level of per capita income to that of national level,
- To provide highest priority for power and communication,
- To maximise productive employment both in rural and urban areas,
(4) To bring about enlarged and more diversified and decentralized
industrial base in the State. The outlay was ` 1076.33 crores and the expenditure was ` 852.39 crores by 1977-78. The plan came to an end by 1977-78, instead of 1978-79. This worked out at cent per cent expenditure. The percentage of average annual growth from 1973-74 to 1977-78 was 7.1 at current prices and 6 at constant prices of 1956-57. The State income at the end of the Plan was ` 2,913 crores at current prices and the per capita income was ` 840 at current prices. The last year of Fifth plan 1978-79 and the next year 1979-80 were called Annual plans. Total outlay was ` 345.27 crores in 1978-79 and ` 385.39 crores in 1979-80 and expenditure was ` 303 crores respectively.
Sixth Five Year Plan (1980-85) :
The main feature was to achieve full employment by 1988, and for the maximum utilisation of the State’s resources and to achieve a growth rate of 6.5 per cent and to increase the per capita income from ` 1,115 (1979-80 prices) to ` 1,500 in 1984-85. The outlay was ` 2,400 crores. The physical achievements include, increase of food production from 57.74 lakh tonnes in 1980- 81 to 67.37 lakh tonnes in 1981- 82; the total number of villages electrified increased to 17,626; the installed capacity in 1981-82 was 1847 MW; 39,927 small scale industrial units were employing 3.25 lakh persons with an investment of ` 332 crores; severe draughts causing not only decline in agriculture but also power production giving a blow to industries was also evidenced during the period.
Seventh Five Year Plan (1985-90) :
The outlay was ` 3,575 crores and the expenditure was ` 4,056.4 crores. During the Seventh plan period the annual average growth in the State Domestic Product was placed at five percent compared to 5.6 per cent at the national level (S.D.P reflects the growth of real output in economy). The annual average growth in agriculture and allied activities in the State during the Seventh plan was only 2.1 per cent (3.4 percent at all-India level). In Industrial production, the growth was 6.6 per cent (7.5 per cent at all-India level). The growth in the unorganised sector of the industry which accounted for 50 per cent of the industrial output in the State in early 1980s had slackened. The main reasons for this slow growth rate of State’s economy are low growth in creation of irrigation potential coupled with frequent draughts and chronic power shortages. Nearly 75 per cent of the net sown area is still depending on rainfall. The State Plan outlay is being considerably increased, the level being nearly 10 times that of the Second Plan even in real terms. During 6th and 7th plans investment on Centrally-sponsored schemes has also increased. There has been marked increase in the private investment also. There were significant shortfalls in the State Plan expenditure. The State’s share in the total plan outlay for all states in the country which was 5.5 per cent during Fifth plan has declined to 4.4 per cent in Seventh plan and 5.4 percent in Annual Plans of 1990-92.
Eighth Five Year Plan (1992-97) :
The approved outlay for the Eight five year plan of ` 12,300 crores at 1991-92 prices was more than double the Seventh plan level of ` 3,500 crores. Against annual approved outlay of ` 16,150 crores, expenditure has fallen short by 8.0 percent to ` 14,894 crores. In real terms this is 8.3 percent less (` 11,272 crores) than the Eighth plan approved outlay of ` 12,300 crores although still almost double than that of the Seventh plan. Major Eighth plan achievements against original targets are labelled below. 1. Annual average growth of 5.6%. 2. Bringing the percentage of people below the poverty line to 25% from 38%. 3. Generating 15 to 20 lakh employment opportunities. 4. Increasing operational efficiency in irrigation and power and 5. Increasing basic facilities such as housing, health education and water supply.
Ninth Five Year Plan (1997-02) :
The outlay approved by the planning commission for the Ninth five year plan (1997-2002) was ` 23,400 crores at 1996-97 prices. This is almost double (90 percent higher than) the eighth plan approved outlay of ` 12,300 crores at 1991-92 prices and 57 percent higher than the 8th plan expenditure of ` 14,894 crores. The Ninth plan has been formulated keeping in view the changed national scenario and the consequent expected role of planning, identified strengths and weakness in the a HAND BOOK OF KARNATAKA 400 State’s economy, as well as its critical needs. The State’s growth performance must keep pace with national growth rates and over strip. Productivity in different sectors must also go up. The growing problem of unemployment needs to be addressed by reserving the observed phenomenon of secondary and tertiary sectors to proportionately absorbing as much of the disguised unemployment in the primary sector as their growth would warrant. The ultimate goal of development efforts is human development with its two prerequisites of reduction of poverty and improvement of the quality of life. Within this overall goal inequalities and injustices must be set right and issues of original and gender equity redressed. Crucial areas requiring attention are basic facilities like education, health, drinking water, sanitation and housing.
Tenth five year plan (2002-07):
The outlay approved by the planning commission for the Tenth five year plan (2002-07) was ` 43,558 crores at 2001-02 prices. This is 86 percent of the Ninth five year plan approved outlay of ` 23,400 crores. The outlay for the annual plan 2002-03 is 8616.61 crores and Expenditure is ` 8163.91 crores. The outlay for the annual plan 2004-05 is ` 12322.92 crores. This represents an increase of 26 percent over the budgeted outlay of ` 9779.75 crores in 2003-04 and forms 28 percent of the Tenth plan outlay of ` 43558 crores.
Eleventh Five Year Plan (2007-12) :
The outlay for the Eleventh Five Year Plan (2007-12) is `96703 crores, which represents an increase of 122% over Tenth Five Year Plan (2002-07) outlay of `43558 crores. The outlay proposed in the Annual Plan 2007-08 is ` 17783 crores, which represents an increase of 10% over the budgeted outlay of`16166 crores in 2006-07 and forms 18.4% of the Eleventh Five Year Plan outlay. The District Plan size for Eleventh Five Year Plan is ` 10,800 crores and for Annual Plan 2007-08 it is ` 1980 crores. The outlay proposed for Externally Aided Projects in Annual Plan 2007-08 is ` 3025.51 crores and ` 12041.40 crores in Eleventh Five Year Plan. Under the Special Component Plan ` 2916.42 crores in Annual Plan 2007-08 and ` 15858.36 crores in Eleventh Five Year Plan have been earmarked for the welfare of the Scheduled Castes. Under the Tribal Sub Plan ` 1129.12 crores is Annual Plan 2007-08 and ` 6143.54 crores in Eleventh Five Year Plan have been earmarked for the welfare for the Scheduled Tribes.
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