Finance ministry officials said unlike the previous financial year, the expenditure management axe has not fallen on the Plan side. The Plan outlay, they said, was showing healthy growth and would have its impact on the performance of the economy. Much, however, would depend upon the ability of other government agencies to raise matching resources.

On the other hand, the expenditure compression, officials said, was being exercised on the Non-Plan side. It was further pointed out that financial advisers in different government ministries and departments have been asked to keep tight vigil on non-plan expenditure. The feedback received from the financial advisers would be used for formulating the strategies forthe next budget, preparation for which would begin shortly.

On the Plan side, it was clarified, the expenditures had been approved by the Planning Commission and effort of the ministry was to make available the resources for developmental projects.

According of officials estimates, the Plan expenditure during the first four months has recorded an increase of 37.13 per cent. The government has, thus, exhausted 27.9 per cent of the total Plan expenditure budgeted for the whole financial year. The similar figure for the last fiscal was 21.7 per cent.

During the last financial year, the Plan outlay during the first four months marginally fell from Rs 15,839 crore to Rs 15,643 crore. This partly explains why the Government efforts failed to give any boost to the economy.

In the current year, the Plan expenditure on capital account in the first four months moved up to Rs 8,463 crore from Rs 5,551 crore in the corresponding period in the last financial year. Expenditure on this account is mostly used forasset construction. Last year, the expenditure on capital account too witnessed a fall of about Rs 400 crore in first four months as compared with the like period of previous financial year. Another component of capital expenditure is the loan disbursed on projects and schemes approved by the Planning Commission. This too showed a growth of about 47 per cent.

On the revenue account, however, the growth in Plan expenditure worked out to be 29 per cent, reflecting comparatively lesser growth in outlay towards maintenance of capital stock. The Plan outlay on revenue account in the first four months of the current fiscal moved up to Rs 12,988 crore from Rs 10,092 crore in the corresponding period in the previous financial year.

With the decent growth being recorded during the initial months of the financial year, it might be possible for the Government to move nearer to the Plan outlay target of Rs 77,000 crore at the end of fiscal, thus achieving about 12 per cent growth. Last year, it might be recalled, thePlan expenditure fell short of the target by more than Rs 3,600 crore. As against the budgeted Plan outlay of Rs 72,002 crore during 1998-99, the expenditure, as per the revised estimates totalled only Rs 68,371 crore.