FM SEEKS HOUSE NOD FOR ~6.3-TRILLION EXTRA SPENDING

Includes record cash outgo of ~4.12 trn in 2nd supplementary demand for grants

Union Finance Minister Nirmala Sitharaman on Thursday sought Parliament’s approval for an additional ~4.12 trillion, one of the highest, in the second supplementary demand for grants of the current fiscal year. It is part of gross additional spending, estimated at ~6.28 trillion, after accounting for ~2.15 trillion of savings or reallocation from ministries with under-utilised funds.

Union Finance Minister Nirmala Sitharaman on Thursday sought Parliament’s approval for an additional ~4.12 trillion, one of the highest, in the second supplementary demand for grants of the current fiscal year.

It is part of gross additional spending, estimated at ~6.28 trillion, after accounting for ~2.15 trillion of savings or reallocation from ministries with under-utilised funds.

However, the provision for this gross additional spending was made in the revised estimates of the Union Budget.

Of the cash outgo, ~64,598 crore is for enhanced expenditure on fertiliser subsidy under Atmanirbhar Bharat Abhiyan 3.0 and ~20,466 crore for the capital outlay in defence services.

Sources say the reason for high grants is mainly stimulus packages. There were only two demands for grants in this fiscal year instead of three, due the winter session of Parliament not taking place.

To maximise investment in roads and transport, an additional ~5,030 crore has been sought owing to investment in the National Highways Authority of India, Bharat Mala Pariyojna, etc.

Another ~4,970 crore has been sought for road development and a cash outgo of ~3,457 crore was made for the Mahatma Gandhi National Rural Employment Guarantee Act.

To augment health infrastructure, the government has sought ~1,497 crore for grants-in-aid under schemes including Pradhan Mantri Swasthya Suraksha Yojana.

After the Budget and before the fiscal year ends, the finance ministry moves a “Supplementary Demands for Grants” in Parliament. Basically, it comprises proposals related to additional expenditure over and above what is prescribed in the previous Budget. This additional expenditure is met through two means — net cash outgo or cash supplementary and savings of various ministries/departments or technical supplementary. Cash supplements require the government to go for new means or better use of means.

“Approval of the Parliament is sought to authorise gross additional expenditure of ~6,28,379.99 crore. Of this, the proposals involving net cash outgo aggregate to ~4,12,653.48 crore and gross additional expenditure, matched by savings of the ministries/departments or by enhanced receipts/recoveries aggregates to ~2,15,725 crore. Besides, token provision of ~151 lakh is being sought, one lakh for each item of expenditure, for enabling reappropriation of savings in cases involving new service,” said the second Demand for Grants, which includes 79 grants and two appropriations.

In the first batch of the current fiscal year, the government sought parliament’s nod for ~2.36 trillion of additional gross expenditure. Of that ~1.67 trillion was a net cash outgo.