Business IdeasFund support may go up by over 15%
The gross budgetary support (GBS) for 2010-11 is likely to be 15 per cent more than what was provided for the current financial year. The finance ministry had earlier assured the Planning Commission of at least a 15 per cent increase in GBS but due to inadequate funds for ministries like rural development, education and railways, the commission sought a greater increase.
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Finance Minister Pranab Mukherjee and Planning Commission Deputy Chairman Montek Singh Ahluwalia will meet tomorrow to discuss the availability of government resources and the scope to increase GBS.
Officials close to the development told Business Standard that the Planning Commission was batting for ministries which have made major commitments and would need more funds to fulfil them. This is likely to make the finance ministry loosen its purse strings and provide for more funds.
“Even with a 15 per cent hike, there were not enough funds for some flagship schemes and other important sectors. So, there is going to be demand for a greater hike and most likely the increase in GBS might be revised upwards,” said an official on condition of anonymity.