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Cut in Budgetary allocation will jeopardise tourism: House panel

Raw deal:Lower allocation as compared to the projected demand was not unique to FY21, the panel says.file photo

Raw deal:Lower allocation as compared to the projected demand was not unique to FY21, the panel says.file photo  

‘Rs. 147.42 cr. shortfall due to broad cuts by Finance Ministry’

The Finance Ministry’s move to cut down the budgetary allocation for the Tourism Ministry in the upcoming financial year will ‘seriously jeopardise’ the targeted tourism outcomes during 2020-21, a Parliamentary panel has said in its report.

In the Union Budget 2020-21, the Tourism Ministry has witnessed a reduction in allocation of funds due to “broad budgetary cuts imposed by the Ministry of Finance”, and has been allocated Rs. 2,499.83 crore as against its projected demand of Rs. 2,647.25 crore, leading to a shortfall of Rs. 147.42 crore.

Noting that less allocation as compared to the projected demand was not unique to FY2020-21, the panel pointed out that against the projected demands of Rs. 4,320.42 crore and Rs. 4,612.18 crore for FY2018-19 and 2019-20, respectively, the Ministry of Finance provided Rs. 2,150.00 crore and Rs. 2,189.22 crore in budget estimates (BE) 2018-19 and BE 2019-20, which was further reduced to Rs. 2,113.48 crore and Rs. 1,416.00 crore as revised estimates (RE) 2018-19 and RE 2019-20 stages, respectively.

“The committee notes with dismay the huge mismatch between the projected demand for funds and actual allocations made for the Ministry of Tourism for the years 2018-19 and 2019-20 as well,” the report said.

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