Reprioritise all spending to meet 12th Plan outlay: Eco Survey

Move suggested to contain fiscal deficit, bring it down to manageable levels

The Economic Survey today suggested the government reprioritise Plan and Non-Plan expenditure in its efforts to contain fiscal deficit and bring it to manageable levels.     

"Reprioritisation of expenditure from Non-Plan to Plan expenditure would be critical in meeting the proposed 12th Plan outlay", Economic Survey 2012-13 said.     

The central plan outlay comprises gross budgetary support (GBS), the amount released by the Centre for various social sector schemes like rural employment guarantee besides, assistance to states and internal and extra budgetary resources of central public sector enterprises.     

The Non-Plan expenditure is mainly recurring expenditure which is not incurred for asset creation or social sector schemes and includes spendings such as salaries and interest payments.     

The 12th Five Year Plan (2012-17) envisages Gross Budgetary Support (GBS) of 5.25% of the Gross Domestic Product economy. The Budget for 2012-13 placed central plan outlay at Rs 6.61 lakh crore as against 5.58 lakh crore in 2011-12 (revised estimates).     

Government with a view to keep a tab on burgeoning fiscal deficit, is aiming to rein it at 5.3% of GDP in 2012-13. This is, however, higher than the budget estimate of 5.1%. The Finance Ministry is all set to keep fiscal deficit target at 4.8% level for next fiscal.     According to the survey, the Non-Plan expenditure during April-December 2012 has been at Rs 6,95,233 crore as against Rs 6,19,457 crore in same period a year ago, registering an increase of 12.2%.     

The Plan expenditure during the April-December 2012 increased by 6.9% to Rs 2,95,890 crore from Rs 2,76,904 crore in the same period a year ago.