The finance ministry has asked all Central ministries to strictly adhere to the budgeted allocation as it would not be possible to provide additional funds because of tight fiscal situation in the current financial year.
“We have strictly asked all ministries to stick to the funds provided in the 2012-13 Budget, and not seek any further funding under any scheme,” a finance ministry official said.
The finance ministry has indicated this to Central ministries while working out revised estimates for the current financial year. The revised estimates would be presented before Parliament during the Budget for 2013-14.
“The revenue is not buoyant. The only way we can control finances is by trimming expenditure. So, we have asked the ministries to stick to their budget allocation,” the official added.
At the time of revised estimates, various ministries come up with estimates of spend for the entire year and furnish it to the budget division in the finance ministry.
Finance ministry officials have already indicated it would be difficult for the government to maintain fiscal deficit at the budgeted level of 5.1 per cent of GDP. Besides higher outgo on subsidies, lower rate of growth in tax revenues and poor off-take of disinvestment programme is adding to the fiscal woes of the Centre.
