Government seeks Parliament nod for additional net spending of Rs 35,000 crore

NEW DELHI: The government on Wednesday sought Parliament’s nod for an additional net spending of Rs 35,000 crore in the current financial year. Finance minister Arun Jaitley presented the second batch of supplementary demand for grants in Lok Sabha, seeking approval for gross additional expenditure of Rs 59,978.29 crore, involving a cash outgo of Rs 35,171.92 crore and the rest matched by savings of ministries or by enhanced receipts or recoveries aggregating to Rs 24,805.34 crore.

The supplementary demand includes cost of repayment obligations under Market Stabilisation Scheme, a facility run by RBI to absorb up to Rs 6 lakh crore that have flowed back into the banking system following the withdrawal of Rs 500 and Rs 1,000 notes as legal tender.

The government has sought to provide an additional Rs 4,000 crore to the flagship rural jobs scheme under MGNREGA. The government provided Rs 38,500 crore for the scheme in the 2016-17 budget and then additional Rs 5,000 crore in the first batch of supplementary grants.



As per the document, Rs 3,096.28 crore has been sought for transfer of Krishi Kalyan Cess to Krishi Kalyan Kosh and for meeting requirement towards general component, special component of Scheduled Castes and Tribal Sub-Plan under Pradhan Mantri Fasal Bima Yojna of agriculture and farmers welfare ministry.

The government is also looking to provide Rs 861.65 crore for equity injection in Air India and conversion of loan outstanding against Pawan Hans Helicopters into equity.

Jaitley has sought Rs 1,000 crore for Coast Guard Organisation towards acquisition of ships, aircraft and fleet, and land acquisition.