NEW DELHI: The Centre on Thursday sought approval from Parliament for fresh cash expenditure of over Rs 4 lakh crore during the current fiscal. This is part of the total gross additional spending, pegged at Rs 6.28 lakh crore, under the second supplementary demands for grants. The remaining Rs 2 lakh crore, as proposed in grants, will be met through savings.
“Approval of the Parliament is sought to authorise gross additional expenditure of Rs 6,28,379.99 crore. Out of this, the proposals involving net cash outgo aggregate to Rs 4,12,653.48 crore and gross additional
expenditure, matched by savings of the Ministries/Departments or by enhanced receipts/recoveries aggregates to Rs 2,15,725 crore,” according to the document placed in Lok Sabha by Finance Minister Nirmala Sitharaman.
The Supplementary Demands for Grants for 2020-21 includes 79 grants and 2 appropriations. Of the total demand, a whopping Rs 3,04,557.83 crore is sought for the Department of Food and Public Distribution, including for food subsidy, subsidy to sugar mills, and extending soft loans to sugar mills. Another big chunk of Rs 49,112.42 crore has been sought for meeting expenditure under Atmanirbhar Bharat 3.0, including payments for indigenous urea (Rs 36,112.8 crore) and import of urea subsidies (Rs 12,999.62 crore).
An additional Rs 15,485.88 crore for payment for indigenous P&K subsidy and Rs 1,22,208 crore will be for providing loans to state governments through issue of debt under special window under back to back loan to states in lieu of GST compensation shortfall. Another Rs 20,466.50 crore will go towards defence outlay. There is a higher demand for cash was due to the stimulus provided in the Covid-hit year.
The Centre also proposed amendment of the Finance Bill in the SCRA,1956 and SEBi Act,1992 with consequential amendments in the SARFAESI Act, 2002 and RDB Act,1993 which will enable debt financing in REITs and InvITs by foreign investors, as announced by the finance minister in her budget speech. The Finance Ministry added that the necessary notifications would be issued by the regulators after the Finance Bill is passed.
Rs 2 lakh cr Amount to be spent through savings
Cash outlay for fertilisers
According to supplementary grants, fresh cash allocation of Rs 65,000 crore has been proposed for fertilisers. This includes subsidy for indigenous urea, indigenous P&K, city compost, etc.