ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Foreign Policy-More Continuity than Change

resource mobilisation. More important, the states' financial position is bound to have thrown their Plans for 1977-78 into complete disarray. In this context, it is necessary to remember that there is to be a marked shift in the distribution of the total Plan outlay in favour of the states this year. Ostensibly this follows the reordering of Plan priorities" in favour of agriculture and rural development, the bulk of the expenditure on which figures in the state Plans. Thus, out of the total Plan outlay of Rs 9,960 crores, as much as Rs 5,021 crores, or a little over 50 per cent, is to be incurred by the states and union territories. The comparable proportion for 1976-77 was slightly below 48 per cent. But while the size of the state Plans is to go up this year by Rs 1,259 crores, or by 33 per cent, from Rs 3,762 crores last year to Rs 5,021 crores, Central assistance for the state Plans is to go up by only about 28 per cent, from Rs 1,412 crores to Rs 1,812 crores. The shifting of the responsibility for financing a larger proportion of the Plan expenditure to the states and union territories becomes even more clear if we consider that the total -net resourcesto be transferred by the Centre to the states and union territories is to show a rise of only a little over 18 per cent in 1977-78 compared to the 33 per cent rise in the states' Plan outlays.

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