Given fiscal constraints, for the first time in the history of Budget-making the consultation process with the Planning Commission and other Union ministries has been ignored while finalising the gross budgetary support for various schemes and programmes.
Government sources said the finance ministry, in consultation with the Prime Minister’s Office, had unilaterally decided on the 2013-14 GBS figure, just 5.8 per cent (`30,218 crores) above last year’s `5,21,000-crore allocation. “The Planning Commission was instructed to just sign on the dotted line. Ministries were instructed by the PMO not to place their respective demands,” a source said.
The increase in budgetary allocation will not be enough to even neutralise current levels of inflation, hovering at seven per cent.
“But it was needed to limit the increase as the current fiscal deficit level is just not sustainable, and it had to be brought down to 4.8 per cent of GDP in 2013-14,” a source said. It is learnt that not only the consolidated GBS figure but also allocations for individual ministries was unilaterally determined by the finance ministry without consulting the Planning Commi-ssion. Except for some key ministries like agriculture, HRD, health, water and communications, the allocations for other ministries have been frozen at 2012-13 Budget levels, sources said. For the first time since the UPA came to power in 2004, the rural development ministry’s allocation will be slashed by 0.8 per cent. It is learnt that rural development minister Jairam Ramesh is challenging this, and has written to the Prime Minister on the matter.