Only marginal increase in Plan spending

It will be a virtual spending holiday at the Planning Commission, at least with respect to the additional allocation of Rs 10,000 crore announced in the Budget to meet the objectives of the National Common Minimum Programme (NCMP).

Despite announcing a significant hike in the allocation of Plan funds for the new and restructured programmes focussing on the National Common Minimum Programme objectives, the government will increase the actual spending only marginally.

"The focus in the current fiscal will be on the existing schemes and the expenditure pattern will be on the existing lines," said officials.

It is too late to introduce new schemes in this fiscal and there is no adequate time to restructure schemes and hike allocations for effective utilisation within 2004-05.

Also, since a number of important programmes lacked absorptive capacity, there would be no point in hiking allocations without restructuring them, they added.

Of the additional Rs 10,000 crore allocated for programmes, which will help achieve the objectives of the NCMP, the Sarva Shiksha Abhiyan is likely to get only an additional Rs 1,000 crore, while agricultural schemes will be assigned about Rs 450 crore.

The reason cited for low hikes in funds earmarked for these programmes is the lack of absorptive capacity. Of the Rs 3,057 crore allocated for the Sarva Shiksha Abhiyan, it had managed to spend only Rs 436 crore in the first quarter of the current fiscal.

The focus in spending this year is expected to be on food-for-work programmes and on drinking water schemes, both of which will have to be given importance in view of the erratic rainfall. With only eight months remaining in the fiscal, there will be no point in launching schemes.

For now, the focus was likely to be on relief work in view of the deficient rainfall, said officials in the Planning Commission.

On taking over as deputy chairman of the Planning Commission, Montek Singh Ahluwalia had said that agriculture, health and education would be focus areas, as without investing in these sectors, the economy would not be able to achieve the targeted 7 to 8 per cent growth.

Of the Rs 10,000 crore, an allocation of Rs 6,000 crore had been earmarked for new or restructured schemes for the central ministries and departments, for increased assistance for infrastructure development, additional allocation in social sector, particularly education, family welfare, health and in physical infrastructure in power and roads.

A lump-sum allocation of Rs 4,000 crore had been made for new and restructured schemes for assistance related to the National Common Minimum Programme for state and Union Territory plans, enhancement of the normal central assistance and increased provision under the Rashtriya Sam Vikas Yojana.