2012年-世界发展银行全球_India_-_Uttarakhand_Economic_Assessment_134页_6mb

Uttarakhand Economic Assessment Summary

Core Content

This report provides an economic assessment of Uttarakhand, focusing on growth, poverty and inclusion, sustainability, public financing, and administration. It was prepared in response to a request from the Government of Uttarakhand and aims to support the development thinking during the Twelfth Five-Year Plan period. The report emphasizes the need for an inclusive and sustainable growth strategy, highlighting the State's potential and the challenges it faces.

Main Points

Economic Growth

• Growth Rate: Uttarakhand's average growth rate increased significantly from 3% in the 1990s to over 10% since 2001, driven by a combination of factors including industrial policies, land and power availability, and fiscal transfers from the Central Government.
• Key Drivers: The State's growth is supported by its favorable location in the North Indian economy and natural resources. However, it still faces challenges such as poor physical connectivity and limited access to markets.
• Recommendations:
  • Expand the production of high-value goods (e.g., vehicles, electronics) and promote services (e.g., education, healthcare).
  • Address transport and logistics challenges in the hill regions.
  • Develop a more commercially oriented policy in the horticulture, tourism, and communal forestry sectors.
  • Implement a new Agriculture Product Marketing Act to encourage contract farming and private sector participation.

Poverty and Inclusion

• Poverty Trends: Poverty in Uttarakhand decreased significantly from 32.7% in 2004-05 to 18% in 2009-10, with most of the decline coming from rural areas.
• Growth Impact: Higher economic growth in the region is a key factor in poverty reduction. However, the growth in consumption within the agriculture, manufacturing, and services sectors was negative or lower than the national average between 1993 and 2005.
• Recommendations:
  • Shift focus from targeted consumption-oriented programs to explicit pro-poor growth strategies.
  • Use data from education, health, and other sectors to inform evidence-based policy.
  • Improve the delivery of public services to hill communities by addressing transport and logistics challenges.
  • Prioritize programs that benefit Mid and High Hill districts, where the majority of the population resides.

Sustainability

• Resource Management: Uttarakhand's economic well-being is closely tied to the sustainable use of its natural resources, including forests, water, and land.
• Environmental Concerns: The report highlights the need for integrated strategies to address sustainability challenges in key sectors such as tourism, manufacturing, and hydropower.
• Recommendations:
  • Develop a comprehensive river basin management approach for hydropower projects.
  • Improve monitoring and analysis capabilities for environmental management activities.
  • Synchronize CAT (Catchment Area Treatment) and compensatory afforestation with project timelines.
  • Implement mechanisms for benefit-sharing with affected communities.
  • Strengthen the enforcement of environmental and forest clearances.

Public Financing

• Fiscal Trends: Fiscal balances improved significantly from 2003-04 to 2006-07, with a revenue surplus of 2.4% and a fiscal deficit of 2.4%. However, the fiscal deficit increased to 4.6% in 2009-10 before improving slightly in the following years.
• Public Spending: The State continues to rely heavily on Central Government resources to meet its development objectives. This is due to geographical limitations and the need for high public expenditure in sensitive border areas and for improving public services.
• Recommendations:
  • Explore revenue-enhancing measures such as ad valorem taxes on foreign liquor, higher motor vehicle tax rates, and reforms in property taxation.
  • Address the fiscal implications of large off-budget spending by assessing the impact of specialized public enterprises and local bodies.
  • Focus on improving the efficiency of key public enterprises (transport, power, tourism) to support development goals.

Administration

• Institutional Restructuring: As a new State, Uttarakhand is restructuring its institutional frameworks to improve public financial management and procurement processes.
• Reforms Implemented:
  • Adoption of the Procurement (Rules) 2008.
  • Unified internal auditing and e-procurement systems.
  • Promotion of Public-Private Partnership (PPP) initiatives.
• Recommendations:
  • Modernize and reform public financial management systems, including manuals, record-keeping, and accountability.
  • Strengthen governance in the hydropower sector by improving monitoring, licensing, and resource management.
  • Enhance the capacity of the State to manage strategic assets effectively and transparently.

Key Information

• Exchange Rate: Rs. 1.00 = US$ 0.02 (as of November 16, 2012).
• Fiscal Year: April 1 – March 31.
• Key Institutions:
  • Central Public Sector Undertakings (CPSU)
  • National Ganga River Basin Authority (NGRBA)
  • Compensatory Afforestation and Fund Management Authority (CAMPA)
  • State Electric Regulatory Commission (SERC)
  • Uttarakhand Jal Vidyut Nigam Limited (UJVNL)
  • Uttarakhand Power Corporation Limited (UPCL)
• Key Policies and Programs:
  • Industrial Policy (2003)
  • Hill Policy (2008)
  • National Rural Employment Guarantee Act (NREGA)
  • National Rural Health Mission (NRHM)
  • National Sample Survey (NSS)
  • District Level Household Survey (DLHS)

Conclusion

Uttarakhand has made significant progress in economic growth and poverty reduction, but it faces major sustainability and administrative challenges. The report calls for a more integrated and inclusive growth strategy, improved public financial management, and a stronger focus on environmental sustainability. It also highlights the need for reform in taxation, procurement, and governance to support long-term development and public welfare.