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Govt seeks Rs79,590 cr more to meet oil, fertilizer bills

Govt seeks Rs79,590 cr more to meet oil, fertilizer bills
PTI
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First Published: Fri, Mar 04 2011. 01 33 PM IST
Updated: Fri, Mar 04 2011. 01 33 PM IST
New Delhi: The government on Friday sought Parliament’s nod for the sanction of an additional Rs79,590 crore to meet extra expenses related to oil and fertilizer subsidies during the current fiscal, over and above the funds allocated earlier.
This includes an additional Rs21,000 crore for compensating the oil marketing companies for under-recoveries on the sale of sensitive petroleum products, according to the third supplementary demands for grants tabled in the Lok Sabha.
In addition, Rs9,000 crore was sought for meeting the defence pension Bill and Rs8,000 crore toward fertilizer subsidies.
Out of the total demand of Rs79,590 crore, the net cash outgo on meeting the extra expenses during the fiscal would be Rs68,918 crore.
The remaining amount, it added, would be met through savings in other heads of expenses and enhanced recoveries. The outgo will not have any implications on the fiscal deficit, as the amount has been included in the revised estimates for 2010-11.
The Rs8,000 crore grant for fertilizers was sought in lieu of a Rs4,350 crore subsidy on imported decontrolled fertilizers and a Rs3,650 crore subsidy on indigenous decontrolled fertilizers.
The total grant amount sanctioned for oil marketing company in the current fiscal stands at Rs38,558 crore, including Rs14,278 crore that was allocated toward their under-recoveries last fiscal.
The government has also sought Rs3,187 crore for meeting the additional expenditure on recapitalisation of PSU banks and to raise its holding in certain state-run banks to 58%.
The grant also includes a Rs3,000 crore compensation to state governments for their revenue loss due to the reduction in Central Sales Tax and Rs500 crore toward VAT compensation.
Furthermore, Rs5,000 crore was sought for extending short-term loans to Food Corporation of India for procurement operations under the targeted public distribution system.
The government also sought an additional Rs3,380 crore sanction for the farmers’ debt relief fund to implement debt waiver and debt relief schemes.
The government had budgeted Rs11.08 trillion toward various subsidies in the current fiscal, which was later revised to Rs12.16 trillion.
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First Published: Fri, Mar 04 2011. 01 33 PM IST
More Topics: Oil | Fertilizer | Bill | Subsidy | Parliament |