Govt seeks Parliament nod for Rs 4.3 lakh cr additional expense
The third batch of Supplementary Demands for Grants 2011-12 was today placed in the Lok Sabha by Finance Minister Pranab Mukherjee.
The government today sought the Parliament's nod for gross additional expenditure of Rs 4.3 lakh crore, including Rs 3.69 lakh crore for repayment of debt in the current financial year. The third batch of Supplementary Demands for Grants 2011-12 was today placed in the Lok Sabha by Finance Minister Pranab Mukherjee.
"Approval of Parliament is sought to authorise gross additional expenditure of Rs 4,30,228.64 crore," Mukherjee said in the demand for grants. Of this, the net cash outgo aggregate to Rs 42,605.78 crore and gross additional expenditure, matched by savings of ministries and department or enhanced receipts totals Rs 3,87,621.79 crore.
Besides, a "token provision" of Rs 1.07 crore has been sought, Rs one lakh for each item of expenditure, for enabling re-appropriation of savings in cases involving new services or new instrument of services. Of the total, the Finance Ministry has sought Rs 3,69,496.27 crore repayment of debt, including of Treasury Bill, cash management bills and international lending agencies.
Ministry of Chemicals and Fertilizers has sought Rs 7,201 crore for providing subsidy on imported and indigenous fertilisers. Other major demand for grants related to Ministry of Consumer Affairs, Food and Public Distribution.
It has sought Rs 9,858.7.57 crore for providing food subsidy and subsidies for interest subvention to NABARD. The government has also sought Rs 14,838 crore for oil subsidy.
Despite low expectations, foreign investors are honing in on this year's budget to be presented on 16 March, to get a sense of the broader policy intent of the Manmohan Singh government.
An attempt at fiscal consolidation might lead to a lower fiscal deficit estimate for the new year, but the key question is, can that target be maintained?