Mumbai:
The full Planning Commission, chaired by prime minister
Manmohan Singh, will meet on October 18 to discuss the
issue of allocation of resources for the social sector
amid reports of differences between the plan panel and
the finance ministry.
The
planning commission is expected to put forward demands
of several ministries that there should be substantial
increase in social sector spending to meet the commitment
of the National Common Minimum Programme, while the finance
minister has been insisting on maintaining fiscal discipline
to meet budgetary targets.
According
to the planning commission, not much budgetary resources
would be available with it and with the government to
spend in 2007-08 if FRBM targets are adhered to. The commission
also points out serious problems with the 2008-09 deadline
for meeting fiscal responsibility budget management (FRBM)
targets.
The plan panel wants a two-year grace period for meeting
FRBM targets. If the targets are allowed to slip by two
years, a good start will be made and momentum will build
up in later years when resources will be more plentiful,
a note issued by the commission said.
The
plan panel note also points to the projected nine per
cent GDP growth which needs higher spending. And, with
continued revenue
buoyancy and limiting of non-plan expenditure within five
per cent, enough funds will be available with the centre
and states in the eleventh plan, the commission points
out.
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