Finance Ministry seeks extra grants of Rs 1.03 lakh crore

index.jpgSource: The Economic Times of India, Aug 02, 2016

NEW DELHI: The government has sought the Parliament‘s nod for additional .Rs 1.03 lakh crore spending in the current fiscal, which will be largely met from savings elsewhere, leaving only a small amount to be covered through fresh allocation that will raise the overall spending.

Finance Minister Arun Jaitley presented the first supplementary demand for grants on Monday, proposing spending with net cash outgo of only .Rs 20,948 crore, of which.Rs 5,000 crore is for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The government has also sought 1,000 crore for providing funds to Indian Strategic Petroleum Reserves for Sovereign Strategic Crude Oil Reserve at Vizag, Mangalore and Pudur. The Demands for Grants includes 51 grants and one appropriation. “Approval of Parliament is sought to authorise gross additional expenditure of.Rs 103,013.74 crore. Of this, the proposals involving net cash outgo aggregate to .Rs 20,948.26 crore and gross additional expenditure, matched by savings… aggregates to 82,064.8 crore,” the document tabled in Lok Sabha said.

The small net cash outgo means the impact on fiscal deficit will not be material. The cash grants include Rs 1,000 crore to the Universal Service Obligation Fund (USOF) for providing Rs 1,000 crore as compensation from USOF to telecom service providers for telecom services in the rural and remote areas.

The Demands for Grants also sought Rs 7,000 crore for transfer to states for disaster relief, need-based special assistance to states and loans. The technical supplemetray grants that involve no net cash outgo include Rs 40,000 crore as ways and means advance to Food Corporation of India to meet the working capital needs towards procurement of food grains for targeted public distribution system.

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