Government seeks Parliament’s nod for additional expenditure of Rs 1.58 lakh crore in FY 2012

Finance Minister Nirmala Sitharaman tabled the third and final batch of supplementary demands for grants in the Lok Sabha, which includes an amount, among other things. 8,141.76 crore to meet the expenditure on additional transfer to the GST Compensation Fund and an amount of Rs. 8,353 crore providing grants for the construction of capital assets for the state governments under the Pradhan Mantri Awas Yojana.

Supplementary Demand for Grants is an additional grant in excess of the amount required to meet the necessary expenditure of the government for which parliamentary approval was previously obtained.

The need for additional expenditure has arisen as the fertilizer subsidy burden has exceeded the Revised Budget Estimates in view of developments in Europe, hence the additional amount 14,902 crore is needed to meet the subsidy commitments. Also, the government is required to settle all financial liabilities towards NSSF before the end of the current financial year, which it will make available in addition. 30,000 crores.

The government has demanded gross additional expenditure 1,58,356.10 crores, but the net cash outflow is expected to be only to the tune of 1,07,408.15 crore as additional expenditure corresponds to an increase in the savings or total receipts/recoveries of the Ministries/Departments 50,946.52 crore.

In addition, a token provision of To enable re-appropriation of savings in cases involving new service or new means of service, a demand of Rs.143 lakh, one lakh for each item of expenditure, has been made.

The last batch of demand for grant had also demanded 14,000 crore as grants to assist states in vaccination against COVID-19 and to facilitate capital expenditure ( 5,000 crore) under the scheme announced in the budget.

In addition, almost 9,000 crore sought for Department of Financial Services for providing grant-in-aid to National Bank for Financing Infrastructure and Development and for meeting additional expenditure towards compound interest subvention to lending institutions under the compound interest subvention scheme for loan moratorium Was. The amount also includes additional transfers to the National Investment Fund and recapitalization of regional rural banks and public sector general insurers.

largest block of 30,169.69 crore additional expenditure on completion and settlement of debts targeted to the Economically Weaker Section (EWS)/Low Income Group (LIG) Category Credit Linked Subsidy Scheme (CLSS) houses under Pradhan Mantri Awas Yojana- Urban (PMAY-U) Is for. Building Materials and Technology Promotion Council (BMTPC) from National Small Savings Fund (NSSF) for PMAY(U) (₹33,000 crore). The government is also facing a higher subsidy burden as urea prices have risen due to the Russia-Ukraine conflict. Besides, other key raw materials like ammonia and phosphate are also seeing upward pressure on prices due to increase in oil and gas prices. Therefore, the additional fertilizer subsidy is estimated at approx. 14,902 crore for which parliamentary approval was sought.

The government has already sought parliamentary approval for the additional gross expenditure of 5.5 trillion last year under the two previous supplements. The current demand for grant is final before the end of the current financial year. Even with high expenditure, the government is expected to keep its fiscal deficit under control as it has the cushion of increased revenue and less expenditure.