Plan panel in a jam over PMO demands

The Planning Commission's attempt to arrive at a figure for next year's annual plan is under pressure from two different quarters.

Caught between the Prime Minister's Office and the finance ministry, the plan allocation for the election year has not yet been finalised.

The Prime Minister's Office has written to the Planning Commission stating that the commitments made by the Prime Minister should be met on a priority basis.

These obligations include announcements related to Sikkim Nagaland and Jammu and Kashmir, in addition to other projects and schemes.

These will require an expenditure of Rs 10,000 crore in 2004-05.

On the other hand, the finance ministry has asked the plan body to limit its gross budgetary support (GBS) requirement for 2004-05 at below Rs 1,00,000 crore in view of the 'fiscal constraints'.

Other than this, the Plan body will have to provide Rs 10,000 crore for a number of schemes as per the directives of the Supreme Court.

These include the Mid-day Meal Scheme, ICDS, National Family Benefit Scheme and the National Maternity Benefit Scheme.

Interestingly, as against the usual practice of the finance ministry waiting for the Planning Commission's letter quoting a figure for gross budgetary support before starting the bargaining process, this time, finance secretary DC Gupta has sent a letter to the plan body asking it to restrict its plan figure even before receiving an initial figure for the gross budgetary support.

A miffed deputy chairman of Planning Commission KC Pant has therefore not sent an estimate for next year's plan figure to the finance ministry.

The first letter usually goes to finance ministry by early November.

The plan body has estimated that it would require around Rs 1,59,000 crore for the annual plan in 2004-05. Last year's allocation was Rs 1,21,000 crore, with and additional Rs 4,000 crore for the Food for Work programme.

States were provided Rs 3,500 crore and a similar amount came in via the externally-aided project route. The total plan size for the current fiscal is therefore at around Rs 1,32,000 crore.

Adding an additional Rs 20,000 crore because of the Prime Minister's announcements and the Supreme Court directives, takes the required figure up to Rs 1,52,000 crore.

The balance Rs 7,000 crore, is only 5.8 per cent of the plan size of Rs 1,21,000 approved in 2003-04.