Support for Plan is up dramatically

PLAN ALLOCATION

The government on Thursday hiked the Plan outlay for 2004-05 by 15.5 per cent to Rs 1,63,720 crore against the revised estimate of Rs 1,41,766 crore in 2003-04.

Of the total, it has hiked the gross budgetary support (GBS) for the Plan for 2004-05 by 20 per cent over the last year's level and said the poor would have the first charge on the funds.

The Planning Commission, which allocates the Plan funds, has been asked to revamp all the existing programmes to conform to the national common minimum programme.

It has already advised the ministries and departments to redefine their priorities and redraw their programmes in accordance with the national common minimum programme.

Finance Minister P Chidambaram gave the Planning Commission a total of Rs 145,590 crore, a steep 19.8 per cent hike from the revised estimate of Rs 121,507 crore in 2003-04.

Pending restructuring, existing programmes will continue, but an allocation of Rs 10,000 crore has been earmarked for programmes which will help achieve the objectives of the national common minimum programme.

Of this additionality, an allocation of Rs 6,000 crore has been earmarked for new or restructured schemes for central ministries and departments, for increased assistance for infrastructure development, additional allocation in social sector, particularly education, family welfare, health and in physical infrastructure in power and roads.

A lump-sum allocation of Rs 4,000 crore has been made for new and restructured schemes for assistance related to the national common minimum programme for the state and Union Territory plans, enhancement of normal central assistance and increased provision under the Rashtriya Sam Vikas Yojana.

Internal and extra budgetary resources have been budgeted at Rs 75,834 crore, up 10 per cent from the revised estimate of Rs 68,919 crore for 2003-04.

In the previous fiscal, however, public enterprises did not do as well as expected. The revised estimate of Internal and extra budgetary resources for 2003-4 was 10 per cent lower than the Budget estimate of Rs 75,741 crore in that year.

The sector wise allocation of Plan funds shows a 30 per cent dip in the allocation made for rural development from Rs 13,238 crore to Rs 9,239 crore for 2004-05.

The allocations to the communications sector has also been pared by 9 per cent from Rs 12,860 crore in the revised estimate for 2003-04 to Rs 11,730 in the Budget estimate for 2004-05.

Allocations to all other sectors have been hiked. The amount given to social services has gone up from Rs 31,102 crore in the revised estimate for 2003-04 to Rs 35,739, a hike of 15 per cent, while the allocation for general economic services has been hiked from Rs 2,033 crore to Rs 9,982 crore, a jump of 391 per cent.

The amount set aside for transport has gone up by 18 per cent. Energy gets a 10.8 per cent rise in outlay, while that for industry and minerals, has been jacked up by a steep 45 per cent from Rs 5,749 crore in the revised estimate for 2003-04 to Rs 8,349 crore in the Budget estimate for 2004-05.