Budget estimates of ministries sought

The exercise to finalise the revised estimates for 2006-07 and Budget estimates for 2007-08 has begun. Financial advisers of all central government departments and ministries have been asked to furnish estimates by November 30 at the latest.

Detailing this, the department of economic affairs has also insisted on a realistic assessment of interests due from public sector undertakings and other borrowers in order to ensure that all outstanding dues are cleared in the next two to three years.

The estimates of expenditure are to be furnished to the Budget division in stages. As in the past, the estimates will be finalised after Secretary (Expenditure) Adarsh Kishore holds discussions with the financial advisors.

These discussions are scheduled to commence this October or November. They will focus on the net budget of each ministry and department "" expenditure less of revenue receipts and capital receipts like recoveries of loans and issue of bonus shares, among others.

Meanwhile, financial advisers have been asked to process the statement of Budget estimates and send them to the Budget division by October 31.

Once the pre-Budget meetings are over, the final caps for expenditure will become the basis for the financial advisers to prepare the final statement for Budget estimates.

A number of other directives have been spelt out by the Budget division. One of these is aimed at maintaining uniformity in the treatment of provision for voluntary retirement and separation schemes to public sector units. Accordingly, the Budget division has asked the ministries to depict such amounts as non-Plan loans.

The amount due on account of recovery as interest and repayment for 2006-07 and 2007-08 will have to be shown separately for each PSU. Departments will also have to specifically indicate wherever the interest receipt is notional (either matched by subsidy provision or by grant of loans to meet the interest liability).

Estimates of interest receipts with regard to loans are to be submitted by October 26. The Budget division has also asked for estimates of public account transactions.