Pranab, Montek to firm up view on GBS tomorrow

Amidst demand for massive hikes in Plan allocations in the next Budget, Finance Minister Pranab Mukherjee and Planning Commission Deputy Chairman Montek Singh Ahluwalia will meet here tomorrow to take a final call on the issue, according to Finance Ministry sources.

Against the demand for an overall increase of 82 per cent by various ministries in the gross budgetary support (GBS) for different government schemes, the Finance Ministry is believed to have agreed for 15 per cent rise to Rs 3.73 lakh crore.

The Planning Commission has been insisting on at least 18 per cent increase in the GBS over Rs 3.25 lakh crore provided during the current fiscal.

This would be for the second time in a month that Mukherjee and Ahluwalia would be meeting on the issue in the back of mounting pressure on government finances. Earlier on January 11, they had met to decided the GBS for the next fiscal.

The GBS is the amount that is earmarked for supporting the various Plan schemes of the Centre including the flagship programmes like NREGA and Bharat Nirman projects.

The actual allocation will be announced in the Budget on February 26.