The Narendra Modi-led government has sought Parliament’s nod for additional spend of ₹59,978.29 crore, including a net cash outgo of ₹35,171.92 crore. This was reflected in the second batch of supplementary demand for grants for 2016-17 tabled in the Lok Sabha by Finance Minister Arun Jaitley on Wednesday.
Interestingly, the supplementary demand document was silent on whether this additional spend would affect the Centre's fiscal deficit position or not.
On the cash outgo front, the main heads of expenditure were on funding assistance to various metro projects (₹3,700 crore); MGNREGS (₹4,000 crore); equity investment in Air India (₹861.65 crore); enhancement of paid-up capital of ECGC (₹100 crore);transfer of Krishi Kalyan Cess to Krishi Kalyan Kosh (₹3,096.28 crore) and transfer of ₹2,000 crore to the Universal Service Obligation Fund (USOF).
There will also be cash outgo towards Grants-in-Aid General under the Price Stabilisation Fund for procurement and import of pulses (₹1,988.39 crore); and transfer of funds to the Rashtriya Swachhta Kosh for funding the Swachh Bharat Abhiyan (₹1,500 crore) and the Seventh Central Pay Commission (₹1,100 crore).
Meanwhile, as much as ₹24,805.34 crore of planned spend will be met from savings of ministries/departments or by enhanced receipts/recoveries. The spends from technical supplementary demands for grants includes transfer of Krishi Kalyan Cess to Krishi Kalyan Kosh (₹3,096.28 crore); MGNREGS (₹3,000 crore); transfer of ₹2,000 crore to the Universal Service Obligation Fund (USOF); write-off of Government of India loan for HMT Ltd and waiver of interest on outstanding loan towards restructuring of Richardson & Cruddas (₹4,285.93 crore)