The central government plan outlay is budgeted at Rs. 4.85 trillion for FY15, which would be 4.3 per cent of GDP at market prices projected for the year. The outlay would be financed by Rs. 2.37 trillion of budget support and Rs. 2.48 trillion of resources of central PSUs. In tune with the initiated shift to capex from revenue account spend, the share of capital expenditure would increase to 45 per cent in budget support for Central Plan, from around 25 per cent in FY13 and FY14, the balance comprising revenue expenditure (including grants for creation of capital assets). Taking into account resources of PSUs, the share of capital expenditure in Central Plan would be 75 per cent.

CPUs including Railways would account for 90 per cent of plan capex and two-thirds of total Central Plan outlay during FY15. Given the preponderance of CPUs in plan capex, resource raising capability of CPUs is a critical factor in meeting targets of the plan capital outlays. In this context, CPUs, which had around three-fourths of their plan investment from own raings, have been found to be a little deficient in resource mobilisation. The total resources of PSUs increased at a moderate 8 per cent during 2013-14 (RE), half the pace in budgetary support.

By the way, the central government’s budgetary plan allocations for FY15 mark a major shift in focus from funding for Central Plan to Central Assistance to State Plans. As a result of this shift, Central Plan gets Rs. 2.37 trillion and Central Assistance to state plans Rs. 3.38 trillion from central exchequer plan account provision of Rs. 5.75 trillion. Central assistance to state plans had amounted to Rs. 1.19 trillion and Central Plan Rs. 3.56 trillion out of total plan expenditure of Rs. 4.75 trillion in 2013-14 (RE).

According to budget documents, 126 centrally sponsored schemes have been restructured and transferred to state plans as Central Assistance from FY15, which would give states and union territories greater authority and responsibility over implementation of the schemes. The states and UTs would now get 59 per cent of plan budget allocation, more than twice their share in FY14, whereas the share of Central Plan in plan account disbursement would drop from 75 per cent to 41 per cent.

Central plan outlay on physical infrastructures would be Rs. 3.07 trillion during FY15, accounting for 63 per cent of total Central Plan outlay. Infrastructure sector capex would be lower, compared to Rs. 3.16 trillion assessed in RE for FY14, mainly due to a drop in plan account spend to Rs. 0.78 trillion, from a record high of Rs. 1.03 trillion by petroleum companies during FY14 (RE). ONGC Videsh Nigam Ltd spent Rs. 361 billion, four times budgeted for FY14 and three times the same in FY13. The company would spend Rs. 148 billion during FY15. Oil India Ltd disbursed capex of Rs. 104 billion, three times the budgeted amount; the capex plan for the company for FY15 is for Rs. 36 billion. Among the other petroleum companies, ONGC would be spending Rs. 361 billion, Indian Oil Rs. 114 billion, BPCL Rs. 52 billion, HPCL Rs. 38 billion and GAIL (India) Ltd Rs. 31 billion in FY15.

Among the power companies, NTPC would spend Rs. 224 billion on plan projects, PGCIL Rs. 200 billion, NPCIL Rs. 74 billion, NHPC Rs. 32 billion, Damodar Valley Corporation Rs. 28 billion and SJVNL Rs. 11 billion.

In roads and bridges sector, NHAI would be spending Rs. 240 billion and in coal and lignite Coal India Ltd Rs. 52 billion, Neyveli Lignite Ltd Rs. 29 billion and Singareni Collieries Rs. 38 billion would be major spenders. In civil aviation, Air India Rs. 71 billion and AAI Rs. 21 billion; and under housing sector, HUDCO with Rs. 143 billion outlay would be a major spender.

Railways would spend Rs. 703 billion on railway projects. Telecom and other communication services would see an outlay of around Rs. 123 billion.

Among the non-infrastructure sectors, SAIL with Rs. 80 billion and NMDC Rs. 43 billion capex would be major spenders of capital expenditure in iron and steel industries outlay of Rs. 154 billion. Various metro rail projects would account for most of plan allocation of Rs. 125 billion under urban development. North-eastern areas account for Rs. 135 billion outlay, agriculture and allied activities Rs. 115 billion, rural development Rs. 31 billion, general and technical education Rs. 161 billion, and general economic services including tourism Rs. 263 billion outlay.

2012-13 2013-14 (BE) 2013-14 (RE) 2014-15 (BE)
Petroleum 64,523 74,499 103,346 77,600
Power 57,729 68,883 61,918 70,297
Railways 49,281 62,261 58,257 63,949
Roads and Bridges 28,691 55,304 37,668 38,214
Housing 13,712 27,480 19,741 15,626
Coal and Lignite 5,411 9,492 8,491 9,831
Civil Aviation 8,395 8,865 8,503 9,474
New and Renewable Energy 4,483 5,413 5,021 8,547
Telecommunication Services 3,743 6,380 5,601 5,941
Other Communication Services 2,361 5,280 3,345 6,348
Shipping 2,151 2,034 528 1,369
Ports and Lighthouses 1,780 4,749 3,862 287
Total for Above sectors 242,259 330,640 316,281 307,483
Other sectors 256,216 349,483 297,853 177,049
Total Central Outlay 498,475 680,123 614,134 484,532

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