Fin Min’s demand for ₹3.73L cr extra funds gets LS nod
NEW DELHI: Extended distribution of free food grains to the poor, enhanced cost of fertiliser subsidy, liabilities of state-run Air India and the revenue loss due to excise duty cut on auto fuels are some of the reasons cited by finance minister Nirmala Sitharaman while seeking the Lok Sabha’s authorisation to spend an additional ₹3,73,761 crore in 2021-22.
Referring to remarks of some members that demands for additional funds are very high, Sitharaman said it is because of certain unexpected expenditure not factored into Budget 2021-22. In August, Parliament approved the government’s net additional spending plan of ₹23,675 crore as the first batch of supplementary demands for grants.budget 2021-22 estimated a total expenditure of about ₹34.83 lakh crore.
“About the additional demand... Even in 2011-12, more than 8.6% of the BE [Budget Estimate], was raised through the supplementary demands.... Whereas in 2021-22 -- [considering the] second wave [of Covid-9 pandemic], and also extending the food subsidy... [With] reduction in the fuel price, which the central government brought in, our revenues have come down to that extent, and also the [payment of the ] fertiliser subsidy... are additional demands -- put together , it is 9.3% [of BE 2021-22],” she said in the house.
After her reply, the Lok Sabha cleared the second batch of Supplementary Demands for Grants. The items of additional expenditure include ₹58,430 crore to the department of fertiliser, ₹62,057 crore to the ministry of civil aviation for past liabilities of Air India, and about ₹49,805 crore to the department of food and public distribution. Speaking in the house Sitharaman said banks have recovered over ₹5.49 lakh crore bad loans from defaulters in the last seven years, and ₹13,109.17 crore from absconding defaulters Vijay Mallya, Nirav Modi and Mehul Choksi as of July 2021.
This is besides the latest recovery of ₹792 crore from Mallya and others through sales of their assets, she said. “So, these people who are defaulters, who have fled the country, we have got the money back and put it to the public sector banks, and therefore, the banks are safer today,” she said.
Responding to queries on rising inflation, Sitharaman said it is well within the range of 6% (the RBI’S target) compared to the double-digit inflation during the Congress-led UPA regime. She said the government is taking necessary steps to quell prices of edible oil and other essential commodities.
Speaking about approval for additional expenditure, the finance minister said out of the ₹3.73 lakh crore, ₹2.99 lakh crore is the additional cash outgo due to major expenditures such as past dues of Air India, and food and fertiliser subsidies.