Business OpportunitiesPM to meet Plan panel
As the Budget preparation for the next financial year (2010-11) gathers momentum, Prime Minister Manmohan Singh has called for a full Plan panel meeting on Wednesday to take stock of the overall condition of the economy. The meeting would be attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, along with all the eight members of the Commission.
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The members are expected to brief the Prime Minister on their respective sectors and provide an analysis which will help prioritizing sectors for the upcoming budget, said an official. Moreover, previously when the Prime Minister had met the full panel, the commission had come up with a growth projection of 6.5 per cent. The growth projection might see an upward revision while food inflation might be an issue which is expected be dealt in detail.
Earlier Business Standard had reported that Union ministries have together asked for 82 per cent increase in gross budgetary support (GBS) for Plan outlay for the next financial year (2010-11) over the budget estimates for 2009-10. Proposals from 58 various ministries and departments have sought for higher budgetary support which is a total of Rs 4.09 lakh crore in 2010-11 against Rs 2.24 lakh crore in 2009-10. This, even as Finance Ministry is aiming for a return to path of fiscal prudence.
These demands are put up for approval by the Planning Commission and then the Finance Ministry after which the final allocations are decided upon. The meeting between the commission and the Prime Minister is expected to discuss the situation and prioritize sectors for further discussions with respective ministries.
The Finance Ministry has already begun discussions with industry bodies to take in their recommendations for the budget to be presented in the last week of February.