Fiscal worries: Govt to focus on priority schemes
Pranab Mukherjee has asked the financial advisors of different ministries to focus on the govt`s priority sector schemes and ensure that public expenditure remains within the budgetary limits in order to contain fiscal deficit.
New Delhi: Finance Minister Pranab Mukherjee on Thursday asked the financial advisors of different ministries to focus on the government`s priority sector schemes and ensure that public expenditure remains within the budgetary limits in order to contain fiscal deficit.
"He has ... (asked) us that we should be careful and ensure that we spend on the priority sector rather than spending on the non-priority sector. That`s the message", Sutanu Behuria, additional secretary and financial advisor in the Ministry of Commerce and Textiles told reporters after the meeting of financial advisors with Mukherjee.
The minister also underlined the need to keep public expenditure within the limits approved in the budget, he said, adding, the exercise is aimed at checking government borrowings and containing the fiscal deficit.
The government has pegged the fiscal deficit in the current year at 6.8 percent of the Gross Domestic Product (GDP), up from 6.2 percent in 2008-09.
The government would hold a review of the public expenditure in November, he said, adding "our job as financial advisor is to control expenditure."
"The focus of the meeting was to keep the fiscal deficit in control," said Dipali Khanna, additional secretary and financial advisor in the Information and Broadcasting Ministry.
Mukherjee, she added, also asked the advisors to prioritise expenditure and concentrate on critical areas and make sure that expenditure is in control.
On additional demands from various ministries, Behuria
said the detailed exercise of looking into them would start in
November and that all departments have sent their proposals.
"They will have individual meetings with the Expenditure
Secretary which is going to start very soon," he said, adding
the meetings would not only look at the revised estimates but
also at the next year`s budget.
He said, the final view would be taken once the detailed
exercises begin between the departments, their secretaries and
ministers and the expenditure secretary, based on what the
departments want to priorities.
Though today`s meet, precursor to the November meeting,
was called to cut down on non-priority spending on rising
concerns of fiscal deficit, the government seemed committed to
continue supporting the economy with its planned spending.
"He (FM) is concerned that we should not have to resort
to further borrowings, that we should keep expenditure under
control but at the same time not compromise on development,"
"Priorities well ... (spend on sectors) which has the
maximum impact but try and stay within the budget," he said
quoting Pranab Mukherjee.