Gross Budgetary Support for 2004-05 up 10 per cent

Planning Commission has fixed the gross budgetary support (GBS) for fiscal 2004-05 at Rs 1,33,000 crore, representing an increase of 10 per ...

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Planning Commission has fixed the gross budgetary support (GBS) for fiscal 2004-05 at Rs 1,33,000 crore, representing an increase of 10 per cent over the Budget estimates for the current financial year.

The GBS for the next fiscal was decided jointly by officials of the finance ministry and the Planning Commission ahead of the regular schedule to help the expenditure department to work out plan outlay for four-month period (April-July 2004). The expenditure figures will be reflected in the vote-on-account to be presented by Finance Minister later.

According to sources, the central plan outlay for 2004-05 has been fixed at Rs 80,000 crore, up from a provision of Rs 74,000 crore made in the current fiscal. Increase in allocation for States is sharper at Rs 53,000 crore compared to a provision of Rs 47,000 crore made in the present budget.

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While GBS for 2004-05 is higher than the previous year’s allocation, it is still much lower than the recommendation of Rs 1,59,000 crore made in the Tenth Plan for achieving the 8 per cent GDP growth target.

For the current fiscal, GBS was fixed at Rs 1,21,000 crore though the Planning Commission demanded Rs 1,34,000 crore. Lower allocation, however, has not hampered GDP growth rate which, according to Planning Commission officials, is expected to cross 8 per cent.

The GDP growth rate in the first quarter was 5.7 per cent which zoomed to 8.4 per cent in the second quarter. The fiscal, sources said, was expected to end with an impressive GDP growth rate.

The Planning Commission has also recommended new schemes for the next fiscal, but they will not be included as part of the vote-on-account. As part of the vote-on-account, the government will provide for continuation of old schemes with a normal step-up in expenditure.