Shipping Min may face 13% dip in FY’13 budget

The ministry is expected to get Rs 5,675.47 crore in 2012-13 with a gross budgetary support (GBS) of Rs 817 crore. Though its GBS has risen marginally compared to 2011-12,the internal and extra budgetary resource (IEBR) is likely to be scaled down by about 15 per cent to Rs 4,858.47 crore.

“Only three of the 23 projects planned for the current fiscal were awarded while there were delays in execution as well. So the ministry was unable to spend the most of the funds allocated to it for the current fiscal. The Budget allocation was lowered in the Revised Estimates for 2011-12 and this is likely to be reflected in the allocations for 2012-13 as well,” a government official said,adding that the exact allocations would be finalised by the finance ministry.

Budgetary support for development and upgradation of major ports is expected to drop by nearly a third to Rs 254.95 crore in 2012-13 as against Rs 326.7 crore that was allocated in the Budget estimate for 2011-12,which was cut to a mere Rs 170 crore in the Revised Estimates. However,the IEBR component for the sector could be hiked to Rs 1,872.28 crore in the Budget next week and the total plan support for major ports is likely to be kept at Rs 2,127 crore. “The strained finances of the government is another reason why budgetary support has been lowered for the ministry this year. As a thumb rule,GBS component to most ministries is being kept at the minimum and they will be asked to spend more through internal resources,” the official said.