State to merge non-planned, planned expenditure

With the Centre proposing to scrap the distinction between planned and non-planned expenditure in the budget, the state government, too, is now planning to follow suit.

Finance experts, though, have warned that this proposal will be difficult to implement. The former executive chairman of the state planning board, Dr Ratnakar Mahajan, gave an example, saying that if any government official wants to spend a certain sum on, say, stationery or an urgent need, it would be difficult to purchase the same as there would be no provision for it as planned expenditure.

A senior official in the finance department said on the condition of anonymity that merging of planned and non-planned expenditures would reduce leakages in expenditure, adding the proposal was long-pending demand of economists.

Former finance minister Jayant Patil said the state could increase the limit of the contingency fund, while current finance minister Sudhir Mungantiwar said if the Centre decided to merge planned and non-planned expenditure, the state would do the same.