There is a minimum requirement of Rs 2.5 trillion capital expenditure every year and it is understood at the highest levels of the government.
Government support to Budget 2011-12 - or, gross budgetary support (GBS) - is likely to rise by 18 per cent over last year, taking Planning Commission estimates made at the beginning of the 11th Plan (2007-12). With those estimates, the government has with it resources worth Rs 3.73 lakh crore to fund the Budget for the last year of the Plan.
The government is likely to raise the Gross Budgetary Support (GBS)-- the amount of assistance provided by the Centre for Plan schemes-- by 15 per cent to Rs 2.60 lakh crore during 2010-11.
Finance Minister Pranab Mukherjee on Monday said that government has taken a conscious and bold decision to enhance the Gross Budgetary Support for the Annual Plan 2009-10 by Rs.40,000 crore (Rs 400 billion) over the Interim Budget for 2009-10.
Railways internal resources generation has been reduced due to various factors, including cost escalation and pay commission load.
Minister of State for Railways Bharatsinh Solanki said during Question Hour that against the demand of about Rs 47,000 crore (Rs 470 billion), the gross budgetary support for 2012-13 is only Rs 24,000 crore (Rs 240 billion).
The dream-run in railway stocks may soon run out of steam, caution analysts. The rally, which has lasted nearly a year, may meet time-wise correction post the Union Budget announcements as investors begin scalping profits. "There is going to be a build-up in expectations for the sector from the Union Budget, which is still two-odd months away.
The defence budget was increased to Rs 5.94 lakh crore for 2023-24, up from last year's allocation of Rs 5.25 lakh crore.
Behind the GBS figures, to be revealed in the Budget next week -- lies a fierce tug of war between Finance Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia in which Prime Minister Manmohan Singh eventually threw his weight behind the finance minister.
According to the Approach Paper to the 12th Plan, the Commission has pegged a plan expenditure of Rs 5.83 lakh crore (Rs 5.83 trillion) for 2013-14, which is around 12 per cent more than the budgeted plan expenditure for the current fiscal.
Some say it is time to decongest the existing line infrastructure and cater to the supply shortage of rolling stock to meet the demand for bulk commodities such as coal, cement and foodgrains.
The Annual Plan for Railways in 2013-14 financial year is proposed at Rs 63,363 crore, Union Railway Minister Pawan Kumar Bansal said.
As part of the plan, government departments may have to surrender the unspent project-linked component of the Rs 70,000-crore (Rs 700-billion) additional gross Budgetary support at the end of the financial year.
While Finance Minister Pranab Mukherjee is aiming for a return to the path of fiscal prudence, various departments of the central government appear to be out of sync.
In a recent letter to the power ministry, the Planning Commission recommended allocation of Rs 10,630 crore (Rs 106.3 billion) gross budgetary support for the ministry.
The ministry of finance has assured the Planning Commission of at least 15 percent increase in gross budgetary support for 2010-11, over the 2009-10 budget estimates.
The national carrier to get lion's share of the Rs 1,978 crore budgetary support demanded by the ministry for 2010-11.
Central ministries as a whole are expected to get an increase of only 15 per cent in gross budgetary support for 2008-09, much lower than the 62 per cent increase they had demanded.
In fact, education is the most favoured sector and the three fold increase in its share and a five fold increase in the actual outlays demonstrate the criticality of this sector in ensuring sustained inclusive growth in the future," he told the National Development Council meeting to approve the XIth Five Year plan.
Rlys plan 50 garib raths, 450 AC trains; SPVs planned for wagon manufacture for freight corridors.
Annual plan of 65 ministries and depts hiked 27%.
Planning Commission is understood to have apprised Prime Minister Atal Bihari Vajpayee about the adverse impact that the reduction in budgetary support in the coming fiscal will have on the economy.
The civil aviation ministry is likely to get an allocation of Rs 3,046.93 cror
Cut in GBS to hit social sectors: Planning Commission
Currently, Railways is facing a loss of Rs 34,000 cr in passenger segment and its earnings are falling.
Finance Minister Arun Jaitley will take a final call on whether to break the tradition of presenting a separate Rail Budget, by merging it with the General Budget.
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