Gross budgetary support to go up by Rs 50,000 crore

In tune with Prime Minister Manmohan Singhs desire that promises made in the Presidential speech to the joint session of Parliament be adhered to...

In tune with Prime Minister Manmohan Singhs desire that promises made in the Presidential speech to the joint session of Parliament be adhered to,Budget 2009-10 is likely to promote inclusiveness by significantly hiking social sector allocations.

The gross budgetary support (GBS) to the Plan is likely to be pegged at Rs 3.35 lakh crore,about Rs 50,000 crore more than what Finance Minister Pranab Mukherjee had set aside in his interim Budget. Sectors such as education,power,health and rural development are set to witness a substantial hike in Plan outlay. This implies that the fiscal deficit for 2009-10 will be at least 6 per cent of the GDP compared with 5.5 per cent as projected in the interim Budget.

Government officials involved in Budget-making told The Indian Express that the outlay for education could go up by Rs 15,500 crore. In the interim Budget,Mukherjee had provided Rs 34,400 crore. A special allocation of Rs 8,500 crore is being earmarked for setting up eight new IITs and 16 new Central universities. Another Rs 7,000 crore will be for setting up model schools in educationally-backward blocks and improving the quality of education under the flagship Sarva Shiksha Abhiyan.

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To fructify the Congress manifesto’s promise of a minimum wage of Rs 100 under the National Rural Employment Guarantee Act,the rural development ministrys allocation may be increased by Rs 4,000 crore,taking the total expenditure budget for the ministry to Rs 70,000 crore,highest for any social sector ministry.

With an intention to boost low-cost housing and modern public transport systems like Metro in urban areas,the government is set increase the budget for the Urban Development ministry by close to 80 per cent. In the interim Budget,the ministry got Rs 4,724 crore. Now an additional Rs 3,500 crore will be earmarked for the Jawaharlal Nehru Urban Renewal Mission.

With the impending Commonwealth Games high on the agenda,the government is set to propose almost a three-fold increase in its allocation. The total allocation this year for the Games could be Rs 2,000 crore,of which Rs 1,500 crore is additional to the interim Budget.

To provide electricity to close to 50 percent un-electrified homes,the power ministry is expected to get additional allocation of Rs 8,000 crore. This would mean that the total budget of the ministry for 2009-10 could be over Rs 60,000 crore.

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With around 25 percent increase in allocation,the government wants the health ministry to strengthen rural health infrastructure under nation health mission. In the interim budget the ministry had got Rs 16,534 crore and now the ministry may secure Rs 4,000 crore more.

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