As the Budget exercise for 2015-16 gains speed, the finance ministry is trying to fill up for the lack of a Planning Commission.
For starters, the Budget circular 2015-16 that was issued by the finance ministry last month said Plan ceilings shall be communicated by the Budget division instead of the Planning Commission that earlier was responsible for it.
“At this stage of Budget discussions, the absence of the Planning Commission is not being felt. The role of the Plan Panel usually starts from January or February when the allocations are worked out,” said a senior government official, adding that the Planning Commission is still operational and staffed with officers who are working on various issues.
Sources said the expenditure department’s Plan finance division, which works on the Central Plan and state finances has also been filling in for the Planning Commission wherever required.
Traditionally, while the finance ministry works on the non-plan aspect relating to subsidies, interest payments and salaries and pensions in the Budget, it is the Planning Commission that reviews schemes and programmes of the various ministries and finalises the Plan spend to these agencies.
The gross budgetary support is decided in consultation by the two although the final say is with the Prime Minister.
Currently, the finance ministry has begun pre-Budget discussions and is finalising the Revised Estimates for 2014-15 with each government ministry and department.
“We are holding meetings twice a day to finalise these estimates. After this work on the Budget Estimate for 2015-16 will be started,” said the official, pointing out that the Plan panel was also absent during the preparations of the Union Budget 2014-15 that was presented by the NDA government in July.
A former finance secretary said the absence of the Planning Commission in the Budget exercise would make life much easier for the finance ministry. “Usually, there is a lot of to and fro between the two on what the gross budgetary support should be and is only finalised after inter mediation from the Prime Minister. This is likely to be avoided this year as the amount can be decided by the PM based on discussions with the finance ministry alone,” he said.
However, the Budget division has neither the manpower nor the tools to work out Plan allocation for each ministry, which is usually monitored by the Plan panel and finalised, he pointed out.