Abstract:
In this paper we will discuss the possible budget support in 2008-09. In many sectors the budgetary support will be increased while in some sectors it will not.
The budgetary support is unlikely to be increased in the budget 2008-09. The government may increase the gross budgetary support only by 11.5%.
This means that although the gross budgetary support will rise upto Rs 2,28,725 crore from Rs 2,05,100 crore, it will decrease by 18% as compared to the previous year. The government's spendings will be lowered and so will be the FRBMA targets.
The FRBMA is basically intended to decrease the fiscal deficit. The government aimed to bring the revenue as well as fiscal deficit down by the end of this financial year. Even without a high increase in gross budgetary support, social sectors may have a chance to receive funds from the Central Government.
The budget support for the agricultural sector may be increased by more than 12% to Rs 6,203 crores. Similarly the gross budget support for the health sector, women and child welfare, education, social justice, poverty alleviation and tribal affairs is also likely to increase.
The overall budget allocation for physical infrastructure may be decreased since the government is depending more upon the funds coming from the private sector in these areas. The budgetary support for the power ministry may be decreased.
Gross Budgetary Support for the ministry of road transport and highways and urban development ministry may be increased by only 7.5% and 4%, respectively. Budget support for the atomic energy sector will remain the same, that is Rs 4,596 crores, as it was in 2007.
However, out of the total amount of gross budget support for 2008-09, Rs 56,470 crore is allocated for the state ministries and Rs 1,72,255 for the central ministries.