Recent Developments and Initiatives to boost Economic Activity in Rajasthan :

1. The global financial crises and the recessionary trends have impacted the national economy. Rajasthan had spent around 70% of targeted plan expenditure of Rs. 14,020 crores. The pace stands accelerated however, there is a risk of Plan expenditure getting decelerated on account of the overall tax collections witnessing a decline during the third quarter of the current fiscal. In Rajasthan, the collections from Value Added Tax have risen by just 9.78 per cent  as compared to cumulative growth of 24.65 per cent.Transportation are showing negative growth even in gross terms. Along with lower tax receipts by the State, the lower collections in Central Taxes would also hurt state finances.

2. The effects of the recession is being felt most harshly amongst the weaker sections of society, including the castes and the tribes, the minorities, the handicapped and so on. In Rajasthan also reports of job losses and lost opportunities are coming in.

3. The tourism sector has been also severely affected due to recessionary trends and other reasons beyond the control of the State Government. In such circumstances, it is necessary to give due attention to the social sector including crafts, handicrafts, gem & jewellery and garments and textile sector. Exports have declined in the last quarter.

4. While protection has to be given through individual beneficiary and area development programmes that help the vulnerable sections of our society, economic and financial difficulties should not be allowed to impinge upon such programmes.

5. Rajasthan has on its part taken steps to minimise this impact by taking a number of steps to deal with the emerging challenge. Acutely aware of the need to supplement efforts being made by the Government of India, the State is making all efforts to provide a contra–cyclical stimulus via enhanced Plan expenditure in the current year as well as in the next year. The initiative taken by the Government of India to stimulate the economy through a number of monetary and fiscal steps, including acceleration in plan expenditure of major schemes and programmes, would undoubtedly help the economy to weather the storm of global crisis.

6. Rajasthan has taken all possible steps to speed up expenditure, both under State Plan as well as Central Sector Programmes and Centrally Sponsored Schemes. Rajasthan had spent around 70% of targeted plan expenditure of Rs. 14,020 crores and the Revised Estimates has been taken at Rs. 14,915 crores. Similarly, expenditure under Central Sector Programmes and CSS is also taking place at a brisk pace.

7. The State has prepared an Action Plan with well defined goals and targets. The Action Plan Reviews are done every fortnight to ensure effective and smooth implementation of schemes and projects.

8. Under MGNREGA, as against anticipated and budgeted expenditure of Rs. 4600 Cr. in the current year, Rajasthan had spent Rs. 4100 Cr. by December, 2008 and expect to reach the level of Rs. 5700 Cr. by March, 2009. Rajasthan accounts for around 20% of the total expenditure in the country under this programme.
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9. In MGNREGA works, considering the requirement of providing job within 5 Kms. of the residence of a job seeker, there is limitation of having productive and useful works in many Panchayat areas particularly in desert region from within the list of permissible works. Flexibility to take up other works as per need and requirement is of great importance for Rajasthan considering that expenditure under MGNREGA is extremely high, being more than 1/3rd of the State's plan spending. The Planning Commission and Government of India were requested to provide specific relaxations to Rajasthan in the meeting on economic stimulus.

The steps being taken by the State Government to support the initiatives of the Government of India, in bringing back the economy to earlier high growth path through enhanced plan expenditure in would provide fillip to the economy at this critical juncture.