Govt may close some social sector projects New Delhi, Dec 02: The
Planning Commission said it may close down certain social sector schemes or
merge them with others to provide funds for the government's other mega
programmes such as Bharat Nirman and National Rural Employment Guarantee
Scheme.
"We are taking a re-look at the social sector projects which have outlived
their need," Planning Commission Deputy Chairman Montek Singh Ahluwalia told
reporters here.
The government will have to prioritise schemes, he said, adding, "we are
taking a comprehensive look in order to re-allocate resources."
The Plan panel in its final draft approach paper for the 11th five-year plan
has cautioned the only way to meet the revenue deficit targets of FRBM will
be by phasing out those programmes which are revenue-expenditure intensive.
"However, as this would include precisely the programmes focusing on social
inclusiveness, it may not be easy to do unless non-plan revenue expenditure
(mainly subsidies) is drastically cut," it had said.
Major projects including Bharat Nirman, backward regions grant fund,
National Rural Employment Guarantee, Jawaharlal Nehru National Urban Renewal
Mission and all new schemes in agriculture are classified as revenue
expenditure as these are, in effect, grants to implementing agencies in
states, even though they finance asset creation on the ground.
Bureau Report
Planning Commission said it may close down certain social sector schemes or
merge them with others to provide funds for the government's other mega
programmes such as Bharat Nirman and National Rural Employment Guarantee
Scheme.
"We are taking a re-look at the social sector projects which have outlived
their need," Planning Commission Deputy Chairman Montek Singh Ahluwalia told
reporters here.
The government will have to prioritise schemes, he said, adding, "we are
taking a comprehensive look in order to re-allocate resources."
The Plan panel in its final draft approach paper for the 11th five-year plan
has cautioned the only way to meet the revenue deficit targets of FRBM will
be by phasing out those programmes which are revenue-expenditure intensive.
"However, as this would include precisely the programmes focusing on social
inclusiveness, it may not be easy to do unless non-plan revenue expenditure
(mainly subsidies) is drastically cut," it had said.
Major projects including Bharat Nirman, backward regions grant fund,
National Rural Employment Guarantee, Jawaharlal Nehru National Urban Renewal
Mission and all new schemes in agriculture are classified as revenue
expenditure as these are, in effect, grants to implementing agencies in
states, even though they finance asset creation on the ground.
Bureau Report