Govt asks ministries to ensure fiscal prudence
The Centre has set in motion the process of finalising provisions for the next Budget by asking ministries and departments to ensure fiscal prudence in planning their resources.
By Mahendra Kumar Singh, TNN |
NEW DELHI: The Centre has set in motion the process of finalising provisions for the next Budget by asking ministries and departments to ensure fiscal prudence in planning their resources.
Considering the impact of economic slowndown, Planning Commission has written to all ministries, saying there was a need to utilise resources in a judicious and efficient manner by prioritising plan schemes. Sources said the commission has asked ministries to submit their outlays for the annual plan 2010-11 by this week.
Also, the plan panel has reminded ministries to vigorously pursue ‘zero based budgeting ’ exercise to weed out or transfer centrally sponsored schemes. “Ministries have also been directed to ensure well-defined quarterly measurable and monitorable targets for improving the efficiency of budgetary allocations ,” an official said.
The commission has asked ministries to formulate their annual plan in three scenarios — based on 5% increase over the approved allocation last year, based on 10% increase and 15% increase. “Ministries have been directed to observe that critical components , including flagships schemes, should have priority in all scenarios to realise the commitment of the government expressed in the President’s address,” the official said.
With quantum jump in plan outlays for centrally sponsored schemes and those for which additional central assistance is given, the panel has clarified that states would have to make appropriate provision in their budgets and sectoral outlays as per their share of funding in these schemes.
“We have asked ministries to mention the criteria and mode of calculation for allocation among states,” the official said. Ministries have been asked to earmark at least 10% of gross budgetary support for north-eastern states and about 2-3 % of budget for e-governance .
Considering the impact of economic slowndown, Planning Commission has written to all ministries, saying there was a need to utilise resources in a judicious and efficient manner by prioritising plan schemes. Sources said the commission has asked ministries to submit their outlays for the annual plan 2010-11 by this week.
Also, the plan panel has reminded ministries to vigorously pursue ‘zero based budgeting ’ exercise to weed out or transfer centrally sponsored schemes. “Ministries have also been directed to ensure well-defined quarterly measurable and monitorable targets for improving the efficiency of budgetary allocations ,” an official said.
The commission has asked ministries to formulate their annual plan in three scenarios — based on 5% increase over the approved allocation last year, based on 10% increase and 15% increase. “Ministries have been directed to observe that critical components , including flagships schemes, should have priority in all scenarios to realise the commitment of the government expressed in the President’s address,” the official said.
With quantum jump in plan outlays for centrally sponsored schemes and those for which additional central assistance is given, the panel has clarified that states would have to make appropriate provision in their budgets and sectoral outlays as per their share of funding in these schemes.
“We have asked ministries to mention the criteria and mode of calculation for allocation among states,” the official said. Ministries have been asked to earmark at least 10% of gross budgetary support for north-eastern states and about 2-3 % of budget for e-governance .
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