It was also agreed that on the basis of mid year performance and absorptive capacities, an additional outlay of Rs.500 crores in the special package of assistance to Bihar based on performance can be included in the Annual Plan for the year 2008-09, taking this to an effective plan size of Rs.13500 crores.

Deputy Chairman, Planning Commission, Mr. Ahluwalia complimented the State Government for the major initiatives taken towards administrative reforms, decentralization and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government. He said this has lead to acceleration in plan expenditure. He also appreciated efforts being made for improving performance in the sectors of education, health and horticulture.

Mr. Ahluwalia said that the Commission was concerned about the problem being faced by the States in executing Centrally sponsored schemes and was looking forward to suggestions aimed at improving implementation by making guidelines flexible wherever necessary.

Attention was drawn to the industrial policy launched by the State Government in 2006 and it was pointed out that the policy skewed towards dependence on providing fiscal benefits in the form of subsidy and concessions for attracting investments. This was contrary to the policies being pursued by the Central Government which emphasizes for creation of enabling conditions and removal of impediments.