Barring five ministries, all the other central government departments and ministries are likely to spend over 10 per cent lower than their Budget allocation for the current fiscal.

Despite lower utilisation of budgeted funds by nearly all central ministries during the current financial year, the overall absorptive capacity of the ministries has touched Rs 67,862 crore (Rs 678.62 billion) in the revised estimate, compared to the Budget estimate for this fiscal, mainly due to the huge Rs 3,800 crore (Rs 38 billion) drought relief package given to the rural development ministry.

The absorptive capacity indicates the offtake of the ministries as against their budgeted amounts.

The absorptive capacity of nearly all the central ministries, barring road transport, urban development, telecommunications and DEA have touched only 90 per cent of their Plan allocation.

On a gross basis, the total Plan is down 4.2 per cent this fiscal.

The sectors that have seen a major fall in absorptive capacities include the agriculture and allied sectors, energy, industry, science and technology and the social sectors.

While the agriculture sector has seen a 10 per cent drop in the funds utilised in the current fiscal, as against the budgeted amount, the absorptive capacity of the energy sector is down more than 14 per cent this fiscal.

Likewise, the industry and minerals sector has seen a 14 per cent fall in fund utilisation, as against the budgeted funds. The absorptive capacity of the social service sector has reduced over 5 per cent.

The ministry of rural development utilised 37 per cent more funds at Rs 14,076 crore (Rs 140.76 billion) than the budgeted amount of Rs 10,270 crore (Rs 102.70 billion), the increase being entirely on account of the Rs 3,800 crore drought relief package.

Apart from the rural development sector, ministries in the communications sector managed to spend 79 per cent more funds at Rs 1,340 crore (Rs 13.40 billion), as against the Rs 750 crore (Rs 7.50 billion) fund allocated to the sector this fiscal.

The transport sector and general economic services have also seen a minor increase in spending as against their budgeted funds.

Central ministries have got an increased Plan outlay of 3.5 per cent at Rs 69,228 crore (Rs 692.28 billion), as against the Budget estimate of Rs 66,871 crore (Rs 668.71 billion) during the current fiscal.

Run-up to the Budget 2003