Montek satisfied with increase in Plan outlay for FY13

Expressing satisfaction over the proposed increase in Plan outlay for the next fiscal, the Planning Commission today said that it is a good start for 12th Five-Year Plan beginning in April.

"We are very satisfied with the total volume of gross budgetary support (GBS) or Plan expenditure. I think, what we have got is very good start for the 12th Plan," chairman Montek Singh Ahluwalia said.

The Finance Ministry is believed to have approved around 16% increase in the GBS for 2012-13.

According to sources, the plan expenditure for 2012-13 would be around Rs 5.1 lakh crore, up 16% over the Rs 4.41 lakh crore for provided this fiscal.

As per the Approach document to the 12th Plan, the GBS for 2012-13 should be raised by 14.68% to Rs 5,06,387 crore.

The GBS or Plan Expenditure is the amount provided by the Centre for its various social sector schemes like rural employment guarantee and financial assistance the states.

The document, which was approved in October by the Country's apex planning body, National Development Council (NDC) headed by the Prime Minister, has also made a strong case for keeping the expenditure in check to bring down fiscal deficit to 3% level by 2016-17, the terminal year of the 12th Plan.

Ahluwalia said, "I am not in a position to comment on amount of GBS. I think what we have got is a very solid amount. Now the issue is utilising it efficiently. We are concentrating on that."

The Commission had asked for 18% hike in the GBS to raise the spending to Rs 5.2 lakh crore in 2012-13, but concerned over the rising fiscal deficit, the Finance Ministry has agreed for smaller increase, sources said.