The > Economic Survey has suggested that the Government must reprioritise Plan and non-Plan expenditure in its efforts to contain the fiscal deficit at manageable levels.

“Reprioritisation of expenditure from non-Plan to Plan expenditure would be critical in meeting the proposed 12th Plan outlay,” the Economic Survey for 2012-13 said.

The Central Plan outlay comprises gross budgetary support, the amount released by the Centre for various social sector schemes like rural employment guarantee, besides assistance to States and internal and extra budgetary resources of Central public sector enterprises.

The non-Plan expenditure is mainly a recurring expenditure which is not incurred for assets creation or social sector schemes and includes spendings such as salaries and interest payments.

12th Five-Year Plan

The 12th Five-Year Plan (2012-17) envisages gross budgetary support of 5.25 per cent of the gross domestic product economy. The Budget for 2012-13 has placed the Central Plan outlay at Rs 6.61 lakh crore against Rs 5.58 lakh crore in 2011-12 (revised estimates).

With a view to keep a tab on burgeoning fiscal deficit, the Government is aiming to rein it at 5.3 per cent of GDP in 2012-13. This is, however, higher than the Budget estimate of 5.1 per cent. The Finance Ministry is all set to keep the fiscal deficit target at 4.8 per cent level for the next fiscal.

According to the Survey, the non-Plan expenditure during April-December 2012 has been at Rs 6,95,233 crore against Rs 6,19,457 crore in same period a year ago, registering an increase of 12.2 per cent.

The Plan expenditure increased 6.9 per cent to Rs 2,95,890 crore from Rs 2,76,904 crore.

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