Govt mulls VoA instead of full budget

Sanjeev Pargal

JAMMU, Nov 19: The State Government mulled the option of taking ‘Vote on Account’ for next financial year of 2014-15 in March next year if the Election Commission of India announced general elections by then, which would lead to imposition of Model Code of Conduct (MCC) prohibiting the Government from presentation of a full budget.
The Government has, however, ruled out early convening of budget session for presentation of full budget on the ground that it wouldn’t be in a position to complete preparations for the budget ahead of time due to several hiccups like finalisation of plan amount, whose figures had to be taken into account for the budget. For the current financial year (2013-14), the Government had presented the budget in March taking Rs 8000 crores worth annual plan into account while as it was granted only Rs 7300 crores worth plan, therefore, upsetting the budget calculations.
Official sources told the Excelsior that on its part, the State Government has set the budgetary exercise into motion with Finance Department holding budget meetings with each and every Department to ascertain their needs and requirements for next financial year as well as their performance during current financial year.
“We have set the exercise into motion for presentation of full budget. We are making preparations taking into account the complete budget. However, there are reports that the Election Commission could announce general elections sometime in January or early February, leading to imposition of Model Code of Conduct, which barred the State Governments from presenting full budget on the ground that the Government can announce freebies or make other promises (in the budget) to lure the electorates,’’ sources said.
They added that taking this scenario into account, the Government was also mulling the prospectus of taking a Vote on Account in the Assembly session in February-March 2014.
Sources said: “though the State Government was preparing for full budget, it was also keeping the options open for Vote-on-Account. We want to present full budget in March itself but if Model Code of Conduct was imposed, we would be unable to do so’’.
They recalled that in 2004 and 2009 also, the State Government had to take Vote-on-Account due to announcement of Lok Sabha elections. There had been specific guidelines from the Election Commission that no State Government can present full budget in the Legislature once the Model Code of Conduct was imposed as the Government can use presentation of the budget as an opportunity to make certain announcement and freebies to lure the electorates.
A final decision on presentation of full budget or taking Vote-on-Account vested with the Cabinet, sources said but added that the Cabinet itself would be left with no option as all indications pointed out that the Election Commission would announce the Lok Sabha elections either by the end of January or the start of February. The phase-wise elections would be held in April-May.
“If the Government had to take Vote-on-Account, the Legislature session in Jammu, the winter capital of the State, would be a short one and could be convened in February. It could last 10 to 15 days. The Government would then present full budget after the formation of new Government at the Centre in Srinagar, the summer capital of the State, in July-August by when the annual plan of the State for 2014-15 would have been finalised,’’ sources said.
However, they added, the Government would have to find time for presentation of full budget after the formation of new Government in the Centre in June next year and announcement of State Assembly elections, most like in September next year, which would further lead to imposition of Model Code of Conduct in the State. The Assembly elections are due in November-December 2014.