The tug of war between the Planning Commission and the finance ministry over gross budgetary support (GBS) for 2008-09 has heated up.
The Commission has sought a GBS of Rs 2.94 lakh crore for the fiscal?the last year of the UPA government before the country faces general elections in 2009. But the finance ministry is likely to stick to just Rs 2.28 lakh crore, given the Fiscal Responsibility and Budget Management (FRBM) constraints. This will be an increase of 11.52% over last fiscal?s Rs 2,05 lakh crore.
?I am hopeful of getting a good amount for GBS. There are quite a few programmes to be implemented,? Planning Commission deputy chairman Montek Singh Ahluwalia told FE.
Asked about the FRBM targets, Ahluwalia said, ?It is for the finance ministry to bother about. It does not bother me much?.
The Commission said that the GBS for 2008-09 has to be at least 17.5% higher than the earlier demand of Rs 2.50 lakh crore to finance the flagship programmes of the UPA government. In case the finance ministry agrees to the Commission?s demand for Rs 2.94 lakh crore, it would mean that the GBS would rise nearly 20% in 2008-09, compared to 23% during the current financial year. It pointed out that the government has already announced a slew of schemes, including expansion of the National Rural Employment Guarantee Programme, health insurance for the unorganised sector and the National Social Assistance Programme, which would require large funding.