Govt seeks Par nod for Rs 34,724 crore extra spend in FY'12
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Government on Wednesday sought Parliamentary approval for additional gross expenditure of Rs 34,724 crore for 2011-12 with an assurance that the net cash outgo of Rs 9,016 crore will not push fiscal deficit beyond projections in the Budget.
This is the first batch of supplementary demand for grants in the current year. The Supplementary Demands were presented in the Lok Sabha by Finance Minister Pranab Mukherjee with the promise that while extra expenditure of over Rs 34,724.5 crore was being earmarked, ‘there would be overall savings in other grants.’ As the government aims to stick to the fiscal defict target of 4.6 per cent of GDP in 2011-12, it is seeking additional resources in a conservative way.
The additional demands for grants include a provision of Rs 2,300 crore for Rural Development Ministry for meeting expenditure for conducting surveys on BPL, a crucial requirement for implementing the proposed National Food Security Act.
The additional provision of about Rs 10,612 crore is being sought for providing loans to International Monetary Fund. Government is also seeking Parliamentary nod for Rs 1,585.7 crore for additional equity investment in the bonus shares issued by ONGC. Rs 410.73 crore have been asked for providing payment of ex-gratia to victims of Bhopal gas tragedy.
As much as Rs 434.6 crore are being provided in the supplementary demands to Air India towards payment of maintenance of aircraft used for VVIP travel. Besides, the government plans to provide Rs 1,000 crore more on the national clean energy fund.
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