Union Budget 2013: How Chidu cuts muscle this year to build fat next year

Plan expenditure was slashed from Rs  5.21 lakh crore to Rs 3.9 lakh crore – a saving of Rs 1,31,000 crore – which is what has enabled our Finance Minister to raise next year’s number to Rs 5,55,320 crore. Now we know where the money for next year plan expenditure has come from. It is entirely by cutting this year’s budget. Chidambaram has cut muscle this year to feed next year’s spending. [caption id=“attachment_643093” align=“alignleft” width=“380”] Reuters[/caption] The FM details out the minor expenditures even though no one has the foggiest where the money will end up. He allocates more for health, education, among other things. Some of it is money saved from clamping down on expenses this year. Again, its all about outlays, not outcomes. Chidu talks of balancing economic policy and econmic welfare. The latter is a tit-bit thrown for placating Sonia and the Congress crowd. He talks of jobs all over, as we predicted. expenditure target of Rs 16,65,297 crore in 2013-14. Plan expenditure is at Rs 5,55,320 crore – up 29 percent. But don’t be too impressed with that. He has merely cut expenses in 2012-13 to next year. Neat trick. Follow our live blog.