Gross budgetary support may rise

NEW DELHI: Caught in a dilemma of adhering to fiscal prudence and ensuring funds for promised pro-aam aadmi schemes, UPA government is expected to go for a moderate hike in total gross budgetary support (GBS) by at least 15 per cent for fiscal 2010-11, over current budgetary estimates.

Sources said finance ministry has promised the Planning Commission of at least 15 per cent increases in planned expenditure putting the figure at Rs 3.73 lakh crore for next fiscal which will be lower compared to the current year.

For 2009-10 , the increase in GBS at Rs 3.25 lakh crore was 17 per cent over the revised estimates for 2008-09 and if compared to the original support estimated at the beginning of 2008-09, the increase was a massive 34 per cent.

With tight fiscal situation, the assurance from finance ministry comes after considering the spiralling inflation and the need for more funds for fulfilling UPA's promise in sectors like rural development, education and agriculture.

The UPA dispensation is also under pressure to ensure funds for new schemes, which have been announced but are yet to be implemented, like food for all and Right to Education.

The 15 per cent increase in GBS — the amount of assistance provided by the Centre for Plan schemes -- will be to the tune of Rs 2.76 lakh crore during 2010-11. In Budget 2009-10 , the government had provi some of them might be there already.