constituted - of Planning Commission

Chapter-5Internal and Extra Budgetary Resources (IEBR)Internal and Extra Budgetary Resources (IEBR)The central plan outlay consists of budgetary support for central plan (PlanBudget) and Internal and Extra Budgetary Resources (IEBR) of Central PublicSector Enterprises (CPSEs). The plan budget relates to plan programmes andschemes implemented directly by Ministries/Departments concerned. Out of thebudgetary support for central plan, some budgetary support is also provided forfinancing investment by Central Public Sector Enterprises. The rest of theinvestment of the CPSEs is financed through IEBR. Thus, the total investmentby public sector enterprises is financed through (i) budgetary support providedby Central Government and (ii) IEBR raised by CPSEs of their own.The internal resources (IR) of CPSEs comprise mainly of retained profits-net ofdividend to Government, depreciation provision and carry forward of reservesand surpluses. On the other hand, the Extra Budgetary Resources (EBR) consistof receipts from issue of Bonds, Debentures, External Commercial Borrowing,Suppliers’ credit, Deposit receipts and Term Loans from financial institutions.Broadly speaking, while the Internal Resources arise out of the profit earningsof the enterprise, the Extra Budgetary Resources represent the quantum ofdomestic and external borrowings raised by the undertakings.IEBR plays very substantial role in financing central plan outlay. During theEleventh Plan period, the total Plan outlay of Central Government was financedthrough budgetary support to the extent of 55.3 per cent and the remaining wasfinanced through IEBR contribution of the CPSEs. In absolute terms, out oftotal central plan outlay of `2200,712 crore, budgetary support was of`1216,094 crore and IEBR of `984,618 crore. As regards the Plan investment ofthe CPSEs, however, the major portion of the investment was financed throughWorking Group Report on Centre’s Financial ResourcesPage-51