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Planning Commission for delinking divestment from GBS

The Planning Commission is understood to be in favour of delinking Gross Budgetary Support from divestment accruals, planned at Rs 800 billion during the Tenth Plan period of 2002-07, while seeking a budgetary support of Rs 1130 billion for the next fiscal.

The issue, along with the GBS for the Tenth Plan, is expected to be finalised at a meeting between the deputy chairman, Planning Commission K C Pant and the Finance Minister Yashwant Sinha on Friday, official sources said in New Delhi.

The proposal to delink GBS from divestment proceeds comes in the backdrop of the failure to mop up the targetted Rs 60 billion for the GBS through privatisation in the current fiscal.

The commission in its approach paper for the Tenth Plan has targetted Rs 170 billion annually from the process of divestment.

Sources said the commission has pegged the GBS for the next fiscal at Rs 1130 billion, up from Rs 987 billion in the current fiscal.

The commission was also eyeing an ambitious jump of close to 190 per cent in the GBS for the Tenth Plan period at over Rs 7000 billion from Rs 3740 billion during the Ninth Plan period.

The commission had identified infrastructure and power as the thrust areas during the Plan period to pump-prime the economy.

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