Plan panel seeks 18 percent hike in budget

Updated on: Thursday, January 07, 2010

New Delhi: The Planning Commission has asked the finance ministry for a substantial hike in the budgetary support for Central ministries and Budget departments for the coming fiscal to meet the expansionary aspirations in various sectors, especially education, a government official has said. The hike is, however, much lower than the steep increases demanded by various ministries and departments.

We have asked for an 18 per cent increase in the budgetary support this time, which will mostly go for various social sector schemes, including funding the right to education,an official who requested not to be named told ET.

An 18 per cent increase in demand , if met, would translate into an increase in budgetary support to the Central Plan to Rs 2.82 lakh crore against Rs 2.39 lakh crore last year. Interestingly, various ministries and departments have sought resources totalling Rs 4.3 lakh, which is 80 per cent higher than the budgetary estimates of last year.

Commenting on the steep demand made by Central ministries and departments, Planning Commission deputy chairman Montek Singh Ahluwalia had stated earlier this week that this was a normal process. The planning function first entailed looking at what was available and then matching the demands.

The commission will very soon hold a meeting on budgetary resources with the finance ministry, the official said. A large chunk of the hike is likely to go to the human resources development ministry, which is in charge of the right to education promised by the government. Interestingly , the department of higher education has sought 118 per cent increase in budgetary support, while school education department is looking for an increase of 110 per cent. Other ministries and departments seeking big increases in their budgetary supports include ministry of housing and urban poverty alleviation, civil aviation, heavy industries, chemicals and petrochemicals and telecom .

Although the hike demanded by us is more than the 10 per cent- 12 per cent increases granted in most years, the demand is legitimate as all sectors seem to be in an expansionary mood, the official said, adding that the commission hoped that the issue would be settled with the ministry without too much bickering.

Plan panel seeks 18 percent hike in budget

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