July 21, 2021
2 mins read

Govt seeks Parliament nod for additional spending of Rs 1.87 lakh cr

The supplementary demand for grants is an additional grant required to meet the required expenditure of the government over and above the amount for which Parliamentary nod was taken earlier…reports Asian Lite News.

The Centre on Tuesday sought the Parliament’s approval for additional spending of Rs 1.87 lakh crore to meet its expenditure commitments made under various Covid relief measures and to provide higher allocation for the health sector.

Finance Minister Nirmala Sitharaman presented the first batch of supplementary demands for grants in the Lok Sabha that, among other things, also includes a sum of Rs 1,58,999.99 crore required for providing loans to state governments, through issue of debt under a special window under back-to-back loans to states in lieu of GST compensation shortfall.

The supplementary demand for grants is an additional grant required to meet the required expenditure of the government over and above the amount for which Parliamentary nod was taken earlier.

The need for additional expenditure has arisen in wake of the government extending the term of a few Covid relief measures as the country was hit by a second wave of the pandemic post announcement of Budget 2021-22.

Union Finance Minister Nirmala Sitharaman.

The government has sought gross additional expenditure of Rs 1,87,202.41 crore, but net cash outgo is expected to the tune of only Rs 23,674.81 crore as additional expenditure is matched by savings of the Ministries/Departments or by enhanced receipts/recoveries aggregating to Rs 1,63,526.88 crore.

Besides, token provision of Rs 72 lakh has been sought, Rs 1 lakh for each item of expenditure, for enabling re-appropriation of savings in cases involving New Service or New Instrument of Service.

Apart from higher expenditure needed towards supporting the healthcare system during the Covid times, a major portion of additional cash spending, about Rs 1,750 crore will go towards compounded interest support to lending institutions in respect of borrowers under compounded interest support scheme for loan moratorium.

Parliamentary approval has also been sought for additional spending of Rs 10,727.50 crore for meeting expenditure towards Grants-in-aid General under National Rural Health Mission-India Covid-19 Emergency Response and Health System Preparedness Package Phase-II.

Also, an additional sum of Rs 2,641.67 crore is required for meeting expenditure towards Maintenance of Value (MoV) – an IMF Obligation — through issue of securities.

The government has stepped up expenditure in wake of the pandemic that almost brought down the economy to a grinding halt during the time of lockdown during the March-May period last year. Though the impact of second-wave has been limited, already, some early signs of stress seem to appear. The government last month has already announced a Rs 6.28 lakh crore stimulus package.

ALSO READ-Nirmala announces Rs 3 lakh cr collateral free loans for MSMEs

READ MORE-BUDGET 2021: Nirmala replaces ‘bahi khata’ with ‘Made in India’ tablet

Previous Story

No deaths due to lack of oxygen reported by states: Govt

Next Story

Champaran’s flood-affected villagers are demolishing their own homes

Latest from -Top News

Pakistan’s Shadow War in Balochistan

At least 50 killed by Pakistan-backed death squads in Balochistan in April, says HRCB — toll expected to rise in May….reports Asian Lite News The Human Rights Council of Balochistan (HRCB) reported

Russia, Ukraine Resume Talks

The upcoming talks follow a significant hiatus in diplomatic engagement between the two nations, which have been locked in a brutal conflict since Russia’s invasion of Ukraine in February 2022 Russia and

UN Pays Tribute to Indian Soldiers

Thursday was observed as the 77th UN Peacekeepers Day, honouring the work of 61,353 peacekeepers, of whom 5,375 hailed from India….reports Asian Lite News Brigadier Amitabh Jha and Havildar Sanjay Singh, who

Modi’s New Warfare Playbook

Modi has upended the old playbook and India and Pakistan are entering dangerous new territory where nuclear deterrence is no longer a guarantee against conventional conflict…writes Collins Chong Yew Keat The India-Pakistan
Go toTop

Don't Miss

Microsoft stops new sales in Russia

Brad Smith, President and Vice Chair of Microsoft, said that

Vibrant Gujarat Summit Seals 26.3L Cr Deals

In the 10th edition of the Vibrant Summit, MoUs for