constituted - of Planning Commission

Based on the aggregate of individual elements discussed above, total Non-PlanExpenditure is projected to increase from `816182 crore in 2011-12 to`1292025 crore in the terminal year of the Twelfth Plan (2016-17), implying apercentage increase of 58.30 per cent. In terms of percentage of GDP, Non-Plan Expenditure stood at 9.09 per cent of GDP in 2011-12 and in the terminalyear of the Twelfth Plan, it is expected to be 7.31 per cent. The detailedcomponent-wise breakup on the projections in respect of Non-Plan Expenditureis indicated above in Table 4.4.The above projections do not mention the impact of two likely major eventsduring the Twelfth Plan period, namely, the recommendations of the FourteenthFinance Commission which would be applicable from 2015-16 and that of theSeventh Pay Commission. As far as the impact of the Fourteenth FinanceCommission is concerned, since all States have enacted the FRBM legislationand would be on the path of fiscal consolidation, the projections already madeby the Group on grant to States are expected to accommodate the impact of theFourteenth Finance Commission. No change is therefore suggested in the earlierprojections on this account.The Group has not taken the impact of the next Pay Commission into accounton the assumption that the date of effect of the recommendations of the nextPay Commission is likely to be 01.01.2016 and as in the past, the Report wouldbe submitted a year or so later, by which time the Twelfth Plan period would beover. However, the Thirteenth Finance Commission has recommended that thePay Commission’s report should be implemented prospectively. If that has tobe done and the date of effect remains 01.01.2016, an increase of around 15 percent in the pay and pensions bill of the Government per annum can be expectedon a very rough assessment. In 2015-16, the impact would be felt for 3 monthsand 2016-17 for the full year. This has, therefore, been factored in theprojection. Based on the above, the projections work out as under:Working Group Report on Centre’s Financial ResourcesPage-48