The reduction in the Gross Budgetary Support, which is being suggested by the finance ministry, will entail a little less than 10 per cent of the outlay. Sources said that the move could see funding to several of UPA’s flagship programmes getting pruned. Bharat Nirman, Mahatma Gandhi National Rural Employment Guarantee Scheme and Rural Health Mission are among the programmes, which could see some reduction in outlay. The move has come despite Mr Chidambram’s earlier announcement that social schemes would not be affected by the fiscal consolidation programme. Sources said, if the suggestions were agreed upon, the reduction in GBS will also affect Central funding to states, which will be in line with the Kelkar committee’s emphasis on fiscal prudence. The panel had projected the worst-case scenario and contended that the fiscal deficit will go over 6 per cent unless measures are taken. As for measures, it had suggested drastic cuts in subsidies, which the finance ministry did not buy fully given the constraints of “protecting vulnerable sections.”
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TDP objects to shinde remark on telangana
Age Correspondent
Hyderabad, Nov. 11
The Telugu Desam took strong objection to Union home minister Sushilkumar Shinde’s statement that he was unaware of TDP president N. Chandrababu Naidu’s letter to Prime Minister Manmohan Singh requesting an all-party meeting to end the Telangana impasse.
“Mr Shinde’s statement is irresponsible and ignorance. The TD chief wrote the letter in September and the PMO has acknowledged receipt of the letter,” TD politburo member Yanamala Ramakrishnudu said here on Sunday.
“Mr Shinde spoke as if the PM was different from Union government and exposed his hollowness on the issue,” he added.