The Centre on Friday came out with its first batch of supplementary demand for grants involving additional expenditure of Rs 32,120 crore during the current financial year.

The additional expenditure will include net cash outgo of Rs 30,804 crore that would primarily be used for oil subsidy (Rs 28,500 crore) and equity infusion in Air India as part of a turnaround plan (Rs 2,000 crore).

The first batch of supplementary demand for grants was tabled in the Lok Sabha by Finance Minister P. Chidambaram on Friday.

Describing the additional expenditure amount as “small”, Chidambaram later expressed confidence that it would be accommodated within the present borrowing limit.

As part of the supplementary demand for grants, the Centre has also provided fertiliser subsidy of Rs 3,000 crore.

But there will be no cash outgo for the Government on this front, as it would be met through fertiliser department’s savings.

Srivats.kr@thehindu.co.in

(This article was published on December 7, 2012)
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