GoI leaves next FY’s plan to new Govt

Sanjeev Pargal
JAMMU, Dec 16: The Government of India has decided to leave the task of plan finalisation of the States for next financial year (FY) of 2014-15 to the new Government that would come at the helm of affairs before June 1 next year. The Planning Commission of India has decided not to hold the meetings on plan finalisation of next financial year with the State Governments. It, however, would hold the meetings pertaining to plan release of current financial year of 2013-14 only.
Official sources told the Excelsior that the Union Government decision to leave the plan finalisation to new Government has been conveyed to the Planning Commission of India as the Centre has decided that it would not be presenting general budget and taking only Vote-on-Account for 2014-15 in February-March before going for Lok Sabha elections, which were due to be held in April-May.
Though the State Government was yet to make its decision on presentation of full budget or Vote-on-Account (VoA) formally, it was almost clear that the State would be taking VoA in February-March in view of Model Code of Conduct (MCC), which the Election Commission of India was likely to impose by the end of January or start of February.
Principal Secretary, Planning and Development Department, BR Sharma confirmed to the Excelsior that the plan meetings with the Planning Commission of India have not been scheduled so far.
“There was no meeting scheduled with the Planning Commission,’’ Mr Sharma said.
He added that a decision to present full budget or take VoA vested with the Government.
Excelsior had exclusively reported last month that the State Government was mulling VoA in February-March Legislature session as the Governments can’t present full budget after the Model Code of Conduct was imposed by the Election Commission as it (the budget) could carry certain announcements to lure the electorates.
Presentation of budget before imposition of Model Code of Conduct was not possible as, for the purpose, the Government would have to hold the budget session in January-February by when there would be no indications of annual plan of the State for 2014-15 in view of a decision by the Government of India to leave plan finalisation  to next Government. Normally also, the plan finalisation of the States start by the end of May and continue till July.
On its part, the State Government was fully geared to present the full budget or hold plan meetings with the Planning Commission.
“We have done our homework. We have completed the task of Department wise plan finalisation. We have also held budget meetings with different departments. If the Government had to present the budget or its officials were called for plan meeting by the Planning Commission, we are ready for that also,’’ sources said but confirmed that the Planning Commission has decided that it has left the decision for finalisation of plan of the State for 2014-15 to the new Commission that would be set up after formation of new Government at the Centre, a task that has to be finished before June 1.
Generally, the meetings between State officials of Planning and Finance Departments start in the middle of December and continue till June or July when the plan is finalised.
Sources said since the Government of India has decided to take only Vote-on-Account in the Parliament in February-March session of the Parliament, which would be last session of the present Government, there would be no funds with the Planning Commission to finalise plans of the State. The Vote-on-Account only authorized the Government to withdraw certain sums for expenditure of emergency nature, necessary to run the Government.
“The Planning Commission would, however, be free to hold meetings with representatives of the State Government on the expenditure of current year’s annual plan i.e. 2013-14 and review performance of the States before releasing the full amount by the end of March 31, 2014.