Pare frivolous spends,FinMin tells all in Budget run-up

North Block is also writing to all nodal ministries underlining the importance of fiscal prudence. As far as possible,ministries should try to stay within their allocated Budgets and not seek additional funds in the Revised Estimates that are currently being worked out. The finance ministry has further said that the sanctioned expenditure should be monitored and measured against target.

“An additional Rs 50,000 crore has already been sanctioned in the first supplementary demand for grants. So,ideally,ministries should not seek more funds unless for some unforeseen event and non-plan spending should be cut down,” the official said.

The robust growth in tax revenue,along with the proceeds from disinvestment and auction of 3G and broadband spectrum are expected to help the Centre bring down its fiscal deficit to lower than the targeted 5.5 per cent of GDP in 2010-11.

Thanks to a 58 per cent growth in revenue receipts,the Centre’s fiscal deficit in the first six months of the fiscal amounted Rs 1,33,252 crore,or 35 per cent of the full year target.

However,much of the additional revenue of Rs 65,000 crore from the sale of 3G and broadband spectrum has already been used up in the first supplementary demands for grants. The finance ministry is keen that ministries keep expenditure in check.