FM may hike Plan support by 20%

P Chidambaram may raise gross budgetary support to Rs 176,000 cr in 2005-06 Plan outlay.

Finance Minister P Chidambaram is expected to raise the gross budgetary support by 20 per cent to Rs 176,000 crore in the Plan outlay for 2005-06 for an increased expenditure towards social sector following a directive from Prime Minister Manmohan Singh.

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The direction is understood have come during one of the recent meetings Chidambaram and Deputy Chairman of Planning Commission Montek Singh Ahluwalia had with Singh as part of the consultation process for finalisation of the Budget 2005-06, to be presented on February 28.

Sources in the know of the exercise said that GBS was being hiked from Rs 145,000 crore on suggestions from Prime Minister for fulfilling commitments made by the UPA Government under the National Common Minimum Programme.

The suggestions for hiking the Plan support comes in tandem with Prime Minister announcing a six month work agenda for major ministries and departments to work on the promises made by the Government and himself.

Earlier, Ahluwalia had requested for hiking the support, saying more resources would be needed for social sector obligations as CMP programmes alone would necessitate additional Rs 6,500 crore.

The Planning Commission has pitched for fixing the budgetary support at Rs 196,000 crore and even the 20 per cent increase from the current level would leave some gap.