Satisfied with the outcome of the deliberations on the quantum of the budgetary support for 2010-11, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Wednesday said the Centre and the states have to focus on improving the effectiveness of public expenditure.
“We have a very satisfactory outcome on Plan expenditure.
I am confident that on the Plan expenditure side we have what we need to make the developmental impact,” he told reporters when asked about his meetings with Finance Minister Pranab Mukherjee on the gross budgetary support (GBS) — the budgetary assistance for various government programmes — for 2010-11.
Although Mr. Ahluwalia refused to answer questions on the quantum of GBS, the Commission and the Ministry are believed to have agreed to raise the GBS by about 15 per cent during the next fiscal.
While the Central ministers pitched for a hefty increase of over 80 per cent, the Planning Commission insisted on an 18 per cent jump over the Rs. 3.25-lakh crore GBS extended during 2009-10. Mr. Mukherjee, however, is believed to have agreed for a lower raise of 15 per cent in view of the urgency to contain fiscal deficit, which is pegged at 6.8 per cent this fiscal.
The focus, Mr. Ahluwalia said,”should be on the effectiveness of expenditure that involves the Plan panel, the ministries and also the states.”
