Despite elections, no real growth seen in FY14 Plan
Since the actual GBS this year would turn out be significantly lower than the BE thanks to curbs already enforced, the GBS growth over the revised estimate to be unveiled in the forthcoming Budget would still be close to 25%. Over the BE, however, the real growth of GBS would be negative next fiscal given the high inflation.
The squeeze on GBS would imply that central ministries planning an expenditure binge next year keeping the 2014 general elections in mind are in for a major disappointment. Sources said finance minister P Chidambaram is unlikely to provide for any increase in outlay for centrally-sponsored schemes barring the government’s flagship programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme, the mid-day meal scheme as he presents the Budget next month.
GBS or Plan expenditure, includes Budget outlay for the central Plan and budgetary support to state and union territory Plans. GBS used to account for roughly 80% of the Central Plan. Apart from GBS, the Plan includes spending by public sector enterprises,
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