Centre seeks Parliament’s nod for addl Rs 3.73 lakh cr funds in FY22

In addition, Rs 49,805 crore would be provided to the Ministry of Consumer Affairs, Food and Public Distribution for meeting the expenditure towards various schemes of food storage and warehousing.
Parliament of India
Parliament of India

New Delhi, Dec 3 : The Centre on Friday tabled its second batch of supplementary demands for grants in the Parliament, seeking additional Rs 3.73 lakh crore funds for FY22.

The second batch of FY22 ‘Supplementary Demands for Grants’ includes 69 grants and two appropriations.

“Approval of the Parliament is sought to authorise gross additional expenditure of Rs 3,73,761 crore,” the ‘Supplementary Demands for Grants’ document tabled in the Parliament read.

“Of this, the proposals involving net cash outgo aggregate to Rs 2,99,243.04 crore and gross additional expenditure, matched by savings of the ministries or departments or by enhanced receipts or recoveries aggregates to Rs 74,517.01 crore,” it said.

A majority of the enhanced net cash outgo in the second supplementary demand for grants has been led by four big ticket items such as fertiliser subsidies, pending export promotion incentives, expenditure towards food storage and warehousing, and equity infusion into Air India Assets Holding Ltd (AIAHL).

As per the official document, the Ministry of Chemicals and Fertilisers would be given Rs 58,530 crore, Rs 62,057 crore would be given to the Ministry of Civil Aviation for equity infusion in Air India Assets Holding Ltd for repayment of past dues and liabilities.

In addition, Rs 49,805 crore would be provided to the Ministry of Consumer Affairs, Food and Public Distribution for meeting the expenditure towards various schemes of food storage and warehousing.

The Centre has earmarked Rs 5,000 crore and Rs 5,538,300 crore for the Ministry of Defence and the Ministry of Home Affairs, respectively.

ICRA Chief Economist Aditi Nayar said: “At end-October 2021, 52 per cent of the full year expenditure target had been completed, and a portion of the higher than expected net cash outgo of Rs 3 trillion in the second supplementary demand for grants will need to be absorbed through savings in other demands, to curtail the impact on the fiscal deficit.

“Nonetheless, there is near certainty that the fiscal deficit will exceed the budgeted Rs 15.1 trillion, despite our assessment that net tax revenues and RBI surplus transfer will together surpass the BE (Budget Estimates) by Rs 1.7 trillion.”

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