To bring accountability in utilization of plan expenditure, the Planning Commission has decided that allocation for funds in the financial year 2011-12 to Central government ministries will depend on evaluation of their performance done by the Cabinet Secretariat.
The secretariat in April 2010 had come out with result framework document, called RFD, for each department setting targets for them to achieve. Since then performance evaluation of each Central government department has been done twice.
The evaluation now for the first time, will be a key for ministerial fund allocation, which is likely to increase by 15 % as compared to Gross Budgetary Support of Rs 3,74,000 crore for the financial year 2010-11. The plan panel had asked for 20 % increase but the Finance ministry is not willing to give more than 15%.
Plan panel officials said that most of the increased allocation will go for implementing Right To Education, which required additional Rs 70,000 crore in the next three years and for rural infrastructure schemes such as Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
The departments, which have not done well on the RFD targets are unlikely to get higher budgetary allocation as compared to last fiscal. “If the departments fail to meet their own targets in RFD how can they be expected to perform better,” said a plan panel official.
The approach adopted for the budget of financial year 2011-12 is that the departments, which have achieved better utilization and outcome with funds should get higher allocation.
Despite the approach some sectors high on UPA government’s radar such as agriculture, rural development and health are expected to get up 20% increase in allocation.
The government is expected to increase allocation for food subsidy from Rs 54,000 crore to over Rs 75,000 crore to work towards implementation of National Food Security law, which is being examined by a high level committee constituted by the Prime Minister. The government expects to implement the law at fag end of 2011.
As 2011-12, is the last financial year in the 11th plan, not many new schemes might be announced. New schemes to promote sports, Rashtriya Khel Abhiyan, and for job guarantee in urban areas is likely to be announced in the budget. In the khel abhiyan scheme, the government will provide funds at village and district level to develop sports infrastructure.