Plan Panel For Clear Distinction In Budgetary Support Components

The Planning Commission has asked the finance ministry to clearly differentiate between the domestic budgetary support (DBS) and externally aided projects (EAP) components of the gross budgetary support (GBS) for the annual plans.

It has also pushed for the involvement of the plan body in the process of finalising revised estimates for the fiscal. This would mean involving the Planning Commission in the additional allocation or reappropriation of unspent balances of budgeted amounts to various ministries.

Such a move would make the process of allocations more credible and also help in formulating realistic plan proposals, the commission has argued. Involving the plan body in this exercise would allow it to link allocations with the performance of concerned ministries or departments at the time when revised estimates are finalised.

Currently, GBS is granted with the condition that the first draw on it is to be permitted for funding EAPs. This is done in order to maximise utilisation of externally aided funds.

However, the commission has argued that this adversely affects the availability of resources to meet the requirements of programmes funded from DBS. The current procedure results in DBS being residually adjusted. Indicating it separately would result in more effective planning and implementation of programmes funded under this component, the commission has said. The EAP component could at the same time increase or decrease, depending on the overall availability of resources and their utilisation by the concerned ministries.

The Planning Commission has asked for a GBS of Rs 7,05,000 crore for the 10th Five Year Plan, an increase of 1.9 times over the GBS for the 9th Plan which stood at Rs 3,74,000 crore.

The commission has said the proposed increase is consistent with the governments