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Govt seeks Parliament nod for additional spending of Rs 49,715 cr

K.R. Srivats
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Of the net cash outgo of Rs 40,967 crore, as much as Rs 39,441 crore will go towards food, fuel and fertiliser subsidies.
Of the net cash outgo of Rs 40,967 crore, as much as Rs 39,441 crore will go towards food, fuel and fertiliser subsidies.

The Government has sought Parliament’s approval for additional spending of Rs 49,715 crore this fiscal towards meeting the outgo on food, fertiliser and fuel subsidies.

The second and final batch of the supplementary demand for grants, tabled in the Lok Sabha on Friday, includes a net cash outgo of Rs 40,967 crore. It comes at a time when Finance Minister P. Chidambaram has been administering “bitter medicine” to the economy to restore its fiscal health.

Of the net cash outgo of Rs 40,967 crore, as much as Rs 39,441 crore will go towards food, fuel and fertiliser subsidies, which is over and above the Rs 32,120 crore approved by Parliament in the first batch of the supplementary demand for grants in December last year.

In the second batch, oil marketing companies have been provided Rs 24,773 crore as compensation towards under-recoveries on account of sale of petroleum products.

While food subsidy outgo has been pegged at Rs 9,914 crore, the additional spend on fertiliser subsidy will be Rs 4,753 crore.

OIL SUBSIDY

At the revised estimate stage, oil subsidy has been pegged at Rs 96,879 crore. It was Rs 43,580 crore at the Budget estimate stage.

While the first batch of supplementary grants provided Rs 28,500 crore, the second batch seeks approval for about Rs 25,000 crore.

The actual oil subsidy bill for 2011-12 stood at Rs 68,484 crore.

Srivats.kr@thehindu.co.in

(This article was published on March 8, 2013)
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Economic Survey 2014-15 highlights

  • Following are the highlights of Economic Survey 2014-15 presented by Finance Minister Arun Jaitley in Parliament today
  • GDP growth seen at 8.1–8.5 per cent in 2015-16
  • Double digit growth trajectory; 8–10 per cent GDP in coming years
  • Inflation shows declining trend during April-December
  • Current Account Deficit (CAD) to decline to about 1 per cent in 2015-16
  • To adhere to fiscal deficit target of 4.1 per cent of GDP; to aim for 3 per cent
  • Committed to fiscal consolidation; to enhance revenue generation
  • More reforms on anvil; Goods and Services Tax, expanding direct benefit transfers to be game-changers
  • Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed last 5-year average by 8.5 million tonnes
  • NITI Aayog, 14th Finance Commission to enhance fiscal federalism
  • External Sector returning to strength, resilience
  • Need balance between ‘Make in India’ and ‘Skilling India’
  • Services sector negotiations at WTO crucial for India in removing many market access barriers
  • Revitalise PPP model to revive investment
  • Manufacturing and services equally important for growth
  • Consumer inflation in 2015-16 to be between 5-5.5%
  • Lower inflation opens up space for more monetary easing
  • There is scope for big bang reforms
  • Labour, capital, land, market reform and skills to be engines of growth
  • JAM Trinity — Jan Dhan Yojana, Aadhaar, Mobile — to help transfer of funds to poor without leakage
  • Shield domestic industry to promote ‘Make In India’
  • Borrowings to fund investment, not for meeting expenses
  • Food subsidy bill in April-Jan up 20% to Rs 1.08 lakh cr
  • Reform Railway’s structure, commercial practices, overhaul of technology
  • Public investment key growth engine in short-run for Railways, but not a substitute for private investment
  • More disinvestments on the anvil in current fiscal
  • Under-recoveries on petroleum products to come down to Rs 74,664 crore in 2014-15, from Rs 1.39 lakh crore in FY14
  • 4Ds — Deregulation, Differentiation, Diversification, Disinter (better bankruptcy laws) — to push financial sector growth
  • Implementation of GST to boost GDP, exports
  • Suggests medium to long term fiscal policy to target deficit, expenditure
  • Global commodity prices to remain weak in 2015
  • Ecommerce sector to witness 50% growth in 5 years
  • Urban land and labour costs are pushing garment units in South India to small towns »


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