While non-plan expenditure alone is slated to go up by nearly Rs 66,000 crore (Rs 660 billion), including about Rs 10,000 crore (Rs 100 billion) for defence and over Rs 12,500 crore toward increased interest payment, plan expenditure would go up by over Rs 32,370 crore (Rs 323.70 billion) essentially due to higher provisions for plan schemes.

"I estimate the plan expenditure for 2007-08 at Rs 205,100 crore (Rs 2051 billion). As a proportion of total expenditure (net of SBI share acquisition), the Plan expenditure will be 32 per cent," Finance Minister P Chidambaram said presenting the Budget for next fiscal in the Parliament.

With an outgo of Rs 158,995 crore (Rs 1589.95 billion), interest payment alone would account for about one-third of the total non-plan expenditure, while defence and subsidies would entail a slightly lesser proportion of the total non-plan expenditure of Rs 475,421 crore (Rs 4754.21 billion) during 2007-08.

The Central Plan scheme at about Rs 155,000 crore (Rs 1550 billion) would account for more than two-third of the Plan Expenditure with the remaining going to the states under central assistance.

Asserting that agriculture would be a priority sector for the government, the Finance Minister proposed a budgetary outlay of Rs 5,560 crore (Rs 55.60 billion) as compared to Rs 4,900 crore (Rs 49 billion) this year.

He proposed that Rs 225,000 crore (Rs 2250 billion) would be extended as farm credit in the new budget and additional 50 lakh farmers would be brought under this credit.

"The target of Rs 175,000 crore (Rs 1750 billion) set for 2006-07 will be exceeded comfortably and is likely to reach Rs 190,000 crore (Rs 1900 billion)," he said.