To ensure the Centre’s strained financial resources don’t hit its development initiatives, the Planning Commission has urged all ministries and departments to seek a rise of at least five per cent in Plan expenditure for 2013-14, compared to 2012-13.
In their proposals for Plan expenditure, the commission has asked the bodies to envisage two other scenarios as well —10 per cent and 15 per cent increases.
“The departments have been asked to frame proposals for any programme or scheme keeping in view the broad guidelines mentioned in the 12th five-year Plan document,” said a senior official.
After receiving all the proposals, the commission firms up the Plan outlay, also known as the gross budgetary support (GBS). Plan expenditure is the sum the government spends on social sector schemes such as Bharat Nirman, the Mahatma Gandhi National Rural Employment Guarantee Scheme and the National Rural Health Mission. It also includes the Centre’s assistance to the Plans of various states and Union territories.
For this financial year, the government had approved GBS of Rs 3.91 lakh crore, 22 per cent higher than the revised estimate of Rs 3.21 lakh crore for 2011-12.
Officials said considering the government’s focus on fiscal discipline, the commission may not seek a rise of more than 15 per cent in GBS for 2013-14, compared to the Budget estimate for 2012-13.
For this financial year, the government is trying to cut Plan expenditure 20 per cent — from Rs 5.21 lakh crore pegged in the Budget to Rs 4.17 lakh crore, sources said.
