Budgetary support may be 23% higher

The gross budgetary support for the next financial year is likely to be around Rs 177,000 crore, marginally lower than the Rs 179,000 crore suggested by the Prime Minister's Office, but about 23 per cent higher than Rs 143,490 crore provided in Budget 2005-06.

According to officials, the PMO had directed the finance ministry to finalise the budgetary support at Rs 179,000 crore and devise measures for additional resources.

According to Planning Commission estimates, the total funding for railways and agriculture and social sector programmes like Sarva Shiksha Abhiyan, mid-day meals, national rural health mission, employment guarantee scheme, Bharat Nirman and national highways development would go up to Rs 92,000 crore in the next fiscal, as against Rs 60,000 crore this fiscal.

A final meeting of the finance minister and the Planning Commission deputy chairman with the prime minister was expected during the first week of February, officials said.

Budgetary support has been a bone of contention between the Planning Commission and the finance ministry with the Plan panel seeking a provision of Rs 183,000 crore while the finance ministry willing to provide only Rs 157,000 crore.

The Plan panel had pointed out that even a 15 per cent increase in the budgetary support over the last year's figure would make only Rs 16,000 crore of additional resources available to the Centre and Rs 4,800 crore to states.

An internal assessment of the Planning Commission had earlier arrived at a requirement of Rs 223,000 crore.