The Hindu Business Line : Lok Sabha passes first batch of demand for grants

New Delhi, Aug. 22 The first batch of supplementary demands for grants for 2007-08 for additional expenditure of Rs 20,412.14 crore was passed by the Lok Sabha today.

Of this additional expenditure approved, the net cash outgo for the Centre stood at Rs 10,428.22 crore.

The Lok Sabha also passed an appropriation Bill to authorise payment and appropriation of Rs 20,412.14 crore from the Consolidated Fund of India for defraying the additional expenditure during 2007-08.

Replying to the debate on the supplementary demand for grants for 2007-08, the Finance Minister, Mr P. Chidambaram, assured the Lok Sabha that the macro-economy of the country was being managed well by the UPA Government and that there was strong growth, good tax revenues and adequate allocation of funds to various central programmes and also to the States.

“Nobody can say that money is not being provided.

“There is enough money being provided for all programmes. I agree that there may be problems on the delivery and these are legitimate concerns.”

‘Don’t blame growth’

He added: “Don’t blame growth … Growth is the fountainhead from which the (tax) revenues are coming.

“If the economy is only growing at four per cent, we will not get large revenues.”

He also said that States will get about Rs 2,50,000 crore this fiscal as share of Central taxes and also Plan allocation.

States’ share of taxes this fiscal is expected to be about Rs 1,42,450 crore.

Mr Chidambaram also said that the Government will launch the national food security mission to enhance the production levels of rice, wheat and pulses.

‘Agriculture, Achilles heel’

“This Government is acutely conscious of the fact that agriculture is the Achilles heel of the Indian economy.

“Unless agriculture grows at four per cent, there is no satisfaction that industry and services are recording double-digit growth levels.”