The finance ministry and the Planning Commission will undertake a mid-year review around July-August this year to assess if additional funds would be required for flagship programmes like Bharat Nirman and National Rural Employment Guarantee Scheme over and above the proposed Rs 2,40,000-crore gross budgetary support (GBS) for 2008-09 to be announced in the Budget on Friday.
The Commission has also said the government might have to take up supplementary budget during 2008-09 earlier than the normal schedule due to the impending elections.
Usually the supplementary budget is taken up during the winter session of Parliament during November-December. Supplementary budget is introduced if the government feels the need for additional resources over and above of what has been announced in the Budget to finance various existing developmental programmes.
The mid-year review, which will be a detailed scrutiny and review of allocations made in the Budget, will also help the finance ministry provide extra funds separately for projects wherever needed on revised estimate basis.
The review will also help the UPA government to prepare for the Vote on Account, which it expects to be passed in place of a regular Budget in 2009-10 as it will be the year for general polls.
Finance minister P Chidambaram had announced a supplementary grant of Rs 7,000 crore to finance key existing programmes and new initiatives in the current fiscal which is also the first year of the 11th Plan.