Govt seeks modes increase in expenditure in first supplementary demand

NEW DELHI: Government on Monday sought Parliament's nod for additional expenditure of Rs 34,724 crore for 2011-12, but reiterated its commitment to stay within the budgeted fiscal deficit.

Finance minister Pranab Mukherjee presented the supplementary demands in Lok Sabha. Finance minister said the extra expenditure will not impose a burden on the finances as "there would be overall savings in other grants."

The government has budgeted a fiscal deficit of 4.6 per cent of GDP in 2011-12, which may be a challenging one given the growth moderation and rise in subsidies.

The additional demands for grants include a provision of Rs 2,300 crore for Rural Development Ministry for meeting expenditure for conducting surveys on BPL.

The additional provision of about Rs 10,612 crore is being sought for providing loans to International Monetary Fund.

Government is also seeking Parliamentary nod for Rs 1,585.7 crore for additional equity investment in the bonus shares issued by ONGC.