Shillong: The Planning Commission Tuesday fixed Meghalaya's annual plan for 2011-12 at Rs.2, 727 crore, an increase of 22 percent over the previous year's fund allocation of Rs.2, 230 crore.

During his meeting with Planning Commission's Deputy Chairman Montek Singh Ahluwalia in New Delhi Tuesday, Sangma said that Meghalaya needed a substantial annual plan for 2011-12 as the state would continue its focus on poverty eradication.

Stating that generation of employment in rural areas was his top priority, the chief minister said a number of livelihood programmes have been introduced.

Sangma also informed the Planning Commission that the government had initiated steps to improve fiscal health of the state through streamlining of tax collection, increasing Value Added Tax (VAT) and introducing electricity duty.