The Hindu Business Line : Second batch of supplementary demands introduced in LS

New Delhi, Nov 20 The second batch of supplementary demands for grants for meeting gross additional expenditure of Rs 33,290.71 crore for the current fiscal was introduced in the Lok Sabha today by the Union Finance Minister, Mr P. Chidambaram, amid melee caused by the Nandigram issue that rocked both the Houses of Parliament, leading to frequent adjournment.

The demands include 42 grants and one appropriation and entail net cash outgo of Rs 11,869.60 crore with gross additional expenditure, matched by savings of the Ministries/Departments or by enhanced receipts/recoveries that amount to Rs 21,420.82 crore.

Out of the additional expenditure entailing net cash outgo, the major one is for meeting additional expenditure on account of interest liabilities under ‘Market Stabilisation Scheme’ of the Ministry of Finance amounting to Rs 4,500 crore, followed by transfers to States and Union Territory governments of a sum of Rs 3,000 crore under normal Central Assistance, additional Central assistance for other projects, grant component under additional central assistance for externally aided projects. A sum of Rs 1,500 crore for loan component under additional Central assistance for externally aided projects is also sought.

Duty drawback

Yet another major chunk of additional expenditure amounting to Rs 900 crore is claimed by the Ministry of Commerce and Industry for settlement of claims of duty drawback on deemed exports and reimbursement of central sales tax and terminal excise duty for special economic zones and providing 2 per cent interest subvention to scheduled commercial banks in respect of rupee export credit to the exporters.

Following the May 2007 resolution of the National Development Council (NDC), a sum of Rs 565 crore for providing funds as grants-in-aid under Additional Central Assistance scheme to State Plans for agriculture is also sought by the Ministry of Agriculture.

On August 22 during the monsoon session, the Lok Sabha approved the first batch of supplementary demands for grants for the current fiscal for additional expenditure of Rs 20,412.14 crore with a cash net ougto of Rs 10,428 crore and the balance matched by savings/enhanced receipts/recoveries.

The Finance Minister also introduced demands for excess grants for expenditure of the Union Government relating to the year 2005-06. Out of 100 grants and five appropriations in 2005-06, the excess expenditure supervened in nine grants and two appropriations amounting to a total of Rs 97,205.18 crore.