This decision was taken at a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Bihar Chief Minister Nitish Kumar here.

It was also agreed that on the basis of mid-year performance and absorptive capacities, an additional outlay of Rs.500 crore, in the special package of assistance based on performance, can be included in the Annual Plan for the year 2008-09, taking this to an effective plan size of Rs.13,500 crore.

Mr. Ahluwalia complimented the Bihar Government on the major initiatives taken towards administrative reforms, decentralisation and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government, which has lead to acceleration in plan expenditure.

Efforts appreciated
Appreciating efforts being made for improving performance in the sectors of education, health and horticulture, Mr. Ahluwalia said 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.