FM hikes gross budgetary support

With an eye on the needs of the key social sector programmes of the UPA government, the finance minister has hiked gross budgetary support (GBS) for the annual plan 2008-09 by 18% to Rs 2,43,386 crore, up from GBS of Rs 2,05,100 crore for 2007-08.

The additional budgetary support is higher than the assumption of Rs 2,28,725 crore made in the Plan document for the second year of the Eleventh Plan. ���In our view, that will not be enough. Hence, I propose to increase the GBS...,��� the finance minister said, adding that higher GBS would ensure ample funds for all ongoing programmes.

While FM has indicated higher than desired levels of GBS for 2008-09, in percentage terms the increase is similar to the 18% in 2007-08. However, the support is much lower than the ministries��� demand of Rs 3,44,761 crore.

Budget 2008-09 has a Plan `B��� that would provide additional funds of Rs 10,000 crore for development schemes at the supplementary stage. The release from this fund would be performance-based and would be available to central ministries, departments and state governments that achieve the physical and quality targets of Plan schemes. Out of GBS, the allocation for the central plan will be Rs 1,79,954 crore, marking an increase of 16% over 2007-08.

This would be largely used up by allocation to programmes like Sarva Shiksha Abhiyan, Mid-Day Meal Scheme, National Rural Health Mission, Integrated Child Development Scheme, National Rural Employment Guarantee Scheme, Jawaharlal Nehru National Urban Renewal Mission, Rajiv Gandhi Drinking Water Mission and the Total Sanitation Campaign.