New Delhi: The government on Thursday raised the Plan expenditure for 2013-14 by 6.58 percent to Rs 5,55,322 crore from the Budget estimates of Rs 5,21,025 crore for the current fiscal.
However, the jump in the Plan expenditure for 2013-14 is 29.4 percent when compared with the revised estimates of the same for current fiscal at Rs 4,29,187 crore.
The Plan expenditure budget estimates for the current fiscal at Rs 5.21 lakh crore was about 18 percent higher than the budget estimates of such expenditure at Rs 4,41,547 crore in 2011-12.
The Plan expenditure is the government spending on social sector schemes such as Bharat Nirman, rural employment guarantee scheme and National Rural Health Mission. Besides, it includes Centre's assistance to various states and Union Territories Plans.
The non-Plan Expenditure for 2013-14 is budgeted at Rs 11,09,975 crore which is 14.5 percent higher than the budget estimate of Rs 9,69,900 crore for the current fiscal.
The proposed Non-Plan expenditure in 2013-14 is 10.81 percent higher than the revised estimates of Rs 10,01,638 crore.
Presenting the Budgetary proposals for 2013-14 in the Lok Sabha, Finance Minister P Chidambaram said, "I have been able to set the budget estimates of total expenditure at Rs 16,65,297 crore and of Plan expenditure at Rs 5,55,322 crore."
"...Members will be happy to know that Plan expenditure in 2013-14 will be 29.4 percent more than the revised estimate of current year (fiscal). All flagship programmes have been fully and adequately funded," he said.
"I dare to say I have provided sufficient funds to each ministry or department consistent with their capacity to spend the funds. Now it is over to ministries and departments to deliver the outcomes through good governance, prudent cash management, close monitoring and timely implementation," he added.
Chidambaram said, "Government expenditure boosts aggregate demand and it has both good and bad consequences. Wisdom lies in finding the correct level of government expenditure."
"In the budget 2012-13, the estimate of Plan expenditure was too ambitious and the estimate of Non-Plan expenditure was too conservative. Faced with huge fiscal deficit, I had no choice but to rationalise expenditure. We took a dose of bitter medicine. It seems to be working," he said.
The total expenditure proposed for 2013-14 is Rs 16,65,297 crore, an increase of 11.7 percent over the Budget Estimates of Rs 14,90,925 crore for current fiscal.
However the total budgeted expenditure for 2013-14 is 16.4 percent higher than the revised estimate of Rs 14,30,825 crore for the current fiscal.
Explaining further, the minister also said that the estimate of Plan expenditure is placed at Rs 5,55,322 core and as a proportion of total expenditure, it will be 33.3 percent.
"..In 2013-14, I expect to transfer resources to the tune of Rs 5,87,082 crore to the states and union territories under share of taxes, non-plan grants and loans, and central assistance."
The Minister also announced restructuring of Centrally sponsored schemes (CSS) as recommended by the B K Chaturvedi Committee.
"Government is concerned about the proliferation of CSS and Additional Central Assistance (ACA) schemes. They were 173 in number at the end of the 11th Plan. I am glad to announce that the schemes will be restructured into 70 schemes. Each scheme will be reviewed once in two years," the Minister said in the House.
First Published: Thursday, February 28, 2013, 18:57