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The UPA government and its allies may be critical of the Narendra Modi government in Gujarat. But the Planning Commission and its deputy chairman, Monkek Singh Ahluwalia, think that the state is doing well when it comes to meeting the financial and social sector targets.

At a meeting held in New Delhi on Monday, Ahluwalia appreciated the state's revenue surplus budget even after giving tax concession worth Rs 400 crores, according to the Gujarat government.

Last year, Modi had gone to town when a panel appointed by the Rajiv Gandhi Foundation had praised Gujarat's statistics on social sector development. Modi had even issued advertisments to embarrass the Congress.

This time too, Modi did not lose the opportunity to present a robust financial picture of Gujarat before the Planning Commission. The state ended the current year with around 22 per cent higher plan expenditure compared to the original outlay. 

Ahluwalia took note of 10.2 per cent annual growth rate in Gujarat's agriculture sector and an overall growth rate of 12.17 per cent of the state during the year 2006-07.  He also had a word of praise for steps taken by Gujarat for the overall water management programme. 

Modi claimed that Gujarat is "setting an agenda" for tribal development, which would be a "trend setter" for the whole country.  Modi also laid emphasis on "Garib Samruddhi Yojana" for the urban poor population with a package of Rs 11,000 crores.

Ahkuwalia also mentioned about Gujarat's successful Public Private Partnership (PPP) projects for improving infrastructure and social sectors, a state government release said.

Later, the Planning Commission fixed the annual plan for 2007-08 at Rs 16,000 crores, which is 25 per cent more than the approved plan outlay of last year. 

"It is significant that 40 per cent of this year's outlay is earmarked for social sector. The state govt has proposed the 11th Five Year Plan outlay of Rs 100,000 crores, which is 100 per cent more than the outlay of Rs 47,000 crores of the 10th Five Year Plan," a state official said.

Ahluwalia announced an additional Central Assistance of Rs 90 crores to fund projects of special interest of the state govt.

Modi told him that his government was focusing on removal of poverty of different target groups in the 11th Plan period. He said six million people in 38 coastal talukas are covered under "Sagar Khedu Sarvangi Vikas" package, costing Rs 13,000 crores addressing a population of 60 lacs. Similarly, seven million tribals are to be take care under the "Van Bandhu Kalyan Yojana" under a package of Rs 15,000 crores.