Early poll warning: Govt rolls back fiscal deadline for depts

It's official. The Government is gearing up for a vote-on-account — clearly signalling that elections are going to be earlier than sche...

It’s official. The Government is gearing up for a vote-on-account — clearly signalling that elections are going to be earlier than scheduled.

In a letter signed by Additonal Secretary (Budget) D Swarup, the Finance Minuistry has asked all Central ministries to send their ‘‘estimates of Plan and Non-Plan expenditure in the first months of 2004-05 for inclusion in the Vote on Account.’’ Normally, these deadlines are around the first week of February.

The letter, dated December 31, specified the following deadlines:

January 3: All ministries should send ‘‘statement of Budget Estimates of Non-Plan expenditure’’

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January 5: ‘‘Proposals for inclusion in the 3rd batch of Supplementary Demands for Grants for the current year 2003-04.’’

January 6: All Ministries should send ‘‘statement of Budget Estimates of Plan Expenditure’’

January 7: Estimates of Plan and Non Plan expenditure in the ‘‘first four months of 2004-05 for inclusion in the Vote-on-Account.’’

It is the January 7 deadline for inclusion of expenditure estimates in the vote-on-account that give away the government’s behind the scene readiness for an early budget and dissolution of the Parliament.

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The Finance Ministry has even warned that if Ministries don’t adhere to the deadline, their allocatons will be fixed on the basis of the 2003-04 Budget.

Normally, when the Budget is presented on February 28, the Finance Ministry and the Planning Commission jointly decide the figure for Gross Budgetary Support for Plan Expenditure or funds available to all central ministries through the Budget by mid-January.

After this, ministries hold discussions with the Planning Commission for specific fund requirements for projects.

The Planning Commission then clears valid demands for a final assent by the Finance Ministry.

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Traditionally, sources say, the entire exercise is completed by January-end or early February while this year the deadline has been advanced to January 7.

Every year, a vote-on-account for a three-month period is presented alongwith the Budget in February.

This enables the government to carry out expenditure between April to June every year till the Parliament finally passes the Budget after going through a 75-day process of the Budget being examined by the Standing Committees of the Parliament and then the Finance Bill being discussed by the Lok Sabha first and then the Rajya Sabha.

This year the Finance Ministry seems to be planning for a four month vote-on-account to cover all possibilities during elections and after.

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