Problems in budgeting for CMP

The Planning Commission is having a hard time deciding how to allocate the Rs 10,000-crore corpus sanctioned in this year8217;s budget for ...

The Planning Commission is having a hard time deciding how to allocate the Rs 10,000-crore corpus sanctioned in this year8217;s budget for the implementation of the National Common Minimum Programme NCMP agenda. The amount falls way short of the demands made by various ministries and departments for the purpose.

According to officials, the amount required to meet the needs of the 12 priority sectors identified in the budget alone runs up to Rs 11,000 crore. If the demands of all other ministries and departments are taken into account, the amount increases to a whopping Rs 37,000 crore.

Given the fact that the Planning Commission has just Rs 6,000 crore in its kitty to meet these demands 8212; as Rs 4,000 crore has to be set apart for disbursal to states 8212; the task at hand becomes seemingly more difficult.

The 12 priority areas identified in Finance Minister P. Chidambaram8217;s budget speech are special programmes including Food for Work, Sarva Shiksha Abhiyan, Midday Cooked-Meal Scheme, Accelerated Irrigation Benefit Programme, Provision of Rural Amenities in Urban Areas PURA, basic health care, railway modernisation and safety, drinking water, roads, science 038; technology and bio-technology.

The Finance Minister said that while the Planning Commission would make the final allocations, these areas will receive priority and will be provided with additional funds.

Officials also expressed doubts over the utilisation of the funds this fiscal. Since reallocation of funds will be brought before Parliament only as supplementaries which is reserved for the end of the session, the allocation will not get clearance before September. This would leave just seven months for fund utilisation.

On the brighter side, if part of the fund is unutilised this year, this may help the FM achieve the ambitious revenue and fiscal deficit targets of 2.5 per cent and 4.4 per cent respectively set for the fiscal. 8216;8216;Non-utilisation of a portion of the amount will help the government in meeting its fiscal and revenue targets more comfortably,8221; an official said.