The annual plan outlay for Jammu and Kashmir has been fixed at Rs 4,200 crore, which is more than Rs 1,000 crore than the last year's, even as the state earned surplus revenue of more than Rs 600 crore and fiscal deficit shrank to 4.5% from 8.5% last fiscal. The plan size was fixed at a meeting between chief minister Mufti Mohammad Sayeed and Planning Commission deputy chairman Montek Singh Ahluwalia here. The commission appreciated the state for embarking on land reforms besides empowering local bodies.