Contrary to media reports, the Planning Commission is continuing to play an active role in the process of national Budget making..

According to sources, the Commission allocated money to various Central Ministries and Departments on Friday, which will be included in the Budget, which is to be presented on July 10. “The Prime Minister and the Finance Minister had a meeting with the Secretary, Planning Commission, on Thursday and there it was directed that the Commission will release the allocation by Friday,” a senior Government official told Business Line .

The Finance Ministry has already indicated that there will not be any additional allocation over and above what has been provided in the Interim Budget. The UPA Government had proposed a Plan expenditure of ₹5.55 lakh crore for 2014-15, which is same as the Budget estimate of 2013-14. However, Gross Budgetary Support (GBS) has been lowered to ₹2.16 lakh crore from ₹3.56 lakh crore.

Even after a month in office, the Narendra Modi Government is yet to appoint the Deputy Chairman and members of the Commission. This has led to speculation that this advisory body will play a truncated role in the present dispensation and would have no role in Budget-making. Earlier, the Commission, in consultation with the Finance Ministry, used to finalise GBS before the Budget and allocation for various schemes in consultation with Central Ministries and Departments.

The Commission also used to discuss with various States and Union territories before the Budget on allocation. Since there is no Deputy Chairman, no such discussions have taken place. It appears the Finance Ministry will now take a final call in this regard. It may be noted that the Interim Budget hiked the amount under Central assistance to States and Union Territories Plans to ₹3.38 lakh crore for 2014-15 from ₹1.36 lakh crore in 2013-14.

The entire exercise of expenditure is expected to be closed by June 30, after which printing of Budget documents will begin.

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