Despite the strong appeal from the Department of Pharmaceuticals (DoP) to the Planning Commission to allocate more funds for better performance, the Union Budget 2010-11 has drawn a central outlay budget estimate of Rs 165 crore for the department for the next financial year.

The DoP in its demand for grants for the next financial year, has sought an allocation of Rs 559.70 crore, since almost 72 per cent of the total plan allocation of Rs 1,396.17 crore recommended by the Planning Commission under the 11th Five Year Plan remains unutilised. Apparently, with the latest budget outlay, it is almost clear that a considerable amount of the total plan allocation will slip away without utilisation, it is learnt.

The allocation for the first three years – from 2007 to 2010 – for the DoP was a meagre Rs 402.27 crore, which is less than 30 per cent of the total plan allocation. The department expectation of outlay for 2010-11 was Rs 559.70 crore and Rs 434.20 crore for the year 2011-12. The lapse of adequate funds, especially at a time when the department is moving forward with projects to improve human resources, infrastructure and R&D efforts in pharma industry under the India Pharma Vision 2020, may make it difficult to the department to achieve the expected targets.

However, a DoP higher official said that the department will manage with the allocated budget outlay somehow. “It is not only happening to DoP, but also to almost all the ministries and departments. We will somehow manage with the amount allocated according to the budget. We are expecting more in allocation in the next fiscal,” he added on condition of anonymity. It is to be noted that with the budget outlay announced this year, the DoP will have to raise for the Rs 829 crore pending plan outlay in just one financial year, that is 2011-12.

As reported earlier, the Parliamentary Standing Committee on Chemicals and Fertilizers, in the demand for grants issued early this year, has taken strong exceptions to the planning commission's lackadaisical approach in sanctioning adequate funds for the Department of Pharmaceuticals (DoP), even within the recommended outlay for the 11th Five Year Plan.

The Committee also conveyed to the Planning Commission that it should address this issue in all its seriousness and ensure that the outlays are sanctioned in the remaining two years of the plan so that the DoP can plan and utilize the resources for achieving the laid down targets. The Parliamentary panel has also criticised the DoP for having 'rather uninspiring' attitude in utilizing even the available fund.

The revised estimates of DoP's central outlay is Rs 105 crore in the year 2009-10 as against the budget estimate of Rs 155 crore outlayed for the year, according to the latest government report.