Demand for Rs 7,500-crore extra grants tabled

NEW DELHI: The government on Friday sought Parliament's nod for an additional expenditure of Rs 7,500 crore, but most of this spending will be from savings in other schemes. The government has kept the net cash outgo at only Rs 127.14 crore, sending a strong signal that it will keep its finances within the budget.

Finance minister P Chidambaram tabled the first batch of supplementary demands for grants tabled in the Lok Sabha that includes Rs 1,830 for India's contribution towards the International Monetary Fund (IMF).

The government plans to bring down its fiscal deficit to 4.8% of the GDP in the current financial year from 4.9% in 2012-13. Chidambaram has already said he will meet the target despite concerns that there could be slippage in the run up to election.

"The net cash outgo, however, will only be Rs 127.14 crore as "gross additional expenditure, matched by savings of the ministries or departments or by enhanced receipts/recoveries aggregates to Rs 7,372.55 crore," said the statement of supplementary demands for grants.

The additional spending includes 1,000 crore towards the Nirbhaya Fund to promote woman safety and 500 crore for Small Industrial Development Bank of India (SIDBI) to set up a Credit Guarantee Fund. Another 100 crore is being proposed to be given to India Microfinance Equity Fund of SIDBI to provide equity and quasi-equity to micro-finance institutions.

The National Skill Development Corporation has also been provided Rs 1,000 crore to extend skill trainings to youth. Besides, Rs 1,000 crore has been provided for initial capital for establishment of women's bank. Also, Rs 100 crore each has been provided as grants to Aligarh Muslim University and Banaras Hindu University while Rs 200 crore has been provisioned for Rajiv Gandhi Panchayat Sashaktikaran Abhiyan. The government comes out with several batches of supplementary demands for grants to meet expenditure above and over the budgeted expenditure.