Gross Budgetary Support to be hiked by 20.4%

Updated: Mar 1 2006, 06:50am hrs
The gross budgetary support (GBS) for 2006-07 has been hiked by an impressive 20.4% to Rs 1,72,728 crore from Rs 1,43,497 crore agreed upon last year.

A sizeable portion of the increased amount has been allocated to the eight flagship programmes of the government.

Allocation for the schemes have gone up by 43.2% to Rs 50,015 crore from Rs 34,927 crore in 2005-06.

Of the total GBS, allocation for the central plan in 2006-07 is to the tune of Rs 1,31,284 crore which is 18.9% higher than last years provision of Rs 1,10,385 crore.

States got a steeper hike of 25% in their share which was increased to Rs 41,444 crore in 2006-07 crore from Rs 33,112 crore in 2005-06. States got a higher increase than the Centre because they used up more funds in 2005-06 than what was allocated while the centre was not able to utilise the entire allocation.

The revised estimates for 2005-06 show that while states spent Rs 36,538 crore during the year which is about Rs 3,400 crore more than what was allocated, the Centre managed to spend Rs 1,07,253 crore which was Rs 3,132 crore lower than the allocated amount.