In order to contain fiscal deficit at the committed 4.8% of the GDP, the government may trim planned expenditure by over Rs 80,000 crore or about 15% of the budgeted amount in the current fiscal in view of lower utilization of allocated funds so far this fiscal.
While, the total expenditure, including non-plan, is budgeted at Rs 16.65 lakh crore, the budgeted total plan expenditure stands at Rs 5.55 lakh crore for this fiscal. Back in 2012-13 fiscal, the government too had trimmed plan expenditure by over Rs 90,000 crore to Rs 4.29 lakh crore, from Rs 5.21 lakh crore estimated in budget to contain fiscal deficit at 4.9% of GDP.
Further, as per revised estimates for the current fiscal, the Finance Ministry has cut the allocation to the Ministry of Rural Development and Ministry of Human Resource Development by about Rs 15,000 crore and Rs 5,000 crore respectively.
Notably, the 2013-14 budget had allocated Rs 80,194 crore to the rural development ministry, which runs many of the UPA government's flagship programmes like rural job guarantee and road construction schemes. However, going by some media reports, the government has trimmed budget allocation to Rural Development Ministry by some odd 18% alone. Raising concern about this, Rural Development Minister Jairam Ramesh has written to Prime Minister Manmohan Singh, underscoring that such a cut would hinder development.
Government's back-up plan to trim planned expenditure was expected given that fiscal deficit touched 76% of budget estimates in the first six months of the current fiscal. Earlier, the government had come out with austerity measures such as putting a freeze on fresh appointments, banning holding of its conferences in 5-star hotels and barring officials from executive class air travel in order to keep a check on the fiscal deficit.
While, the total expenditure, including non-plan, is budgeted at Rs 16.65 lakh crore, the budgeted total plan expenditure stands at Rs 5.55 lakh crore for this fiscal. Back in 2012-13 fiscal, the government too had trimmed plan expenditure by over Rs 90,000 crore to Rs 4.29 lakh crore, from Rs 5.21 lakh crore estimated in budget to contain fiscal deficit at 4.9% of GDP.
Further, as per revised estimates for the current fiscal, the Finance Ministry has cut the allocation to the Ministry of Rural Development and Ministry of Human Resource Development by about Rs 15,000 crore and Rs 5,000 crore respectively.
Notably, the 2013-14 budget had allocated Rs 80,194 crore to the rural development ministry, which runs many of the UPA government's flagship programmes like rural job guarantee and road construction schemes. However, going by some media reports, the government has trimmed budget allocation to Rural Development Ministry by some odd 18% alone. Raising concern about this, Rural Development Minister Jairam Ramesh has written to Prime Minister Manmohan Singh, underscoring that such a cut would hinder development.
Government's back-up plan to trim planned expenditure was expected given that fiscal deficit touched 76% of budget estimates in the first six months of the current fiscal. Earlier, the government had come out with austerity measures such as putting a freeze on fresh appointments, banning holding of its conferences in 5-star hotels and barring officials from executive class air travel in order to keep a check on the fiscal deficit.
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