Public expenditure to go up by additional Rs25,727 cr

Public expenditure to go up by additional Rs25,727 cr

New Delhi: The government on Tuesday came out with the first batch of supplementary demands for grants in the Lok Sabha seeking to raise public expenditure by an additional Rs25,725 crore during the current fiscal.

The important expenditure proposal include Rs800 crore equity infusion into the ailing National Aviation Company of India Limited (NACIL), the state-owned company which operates Air India, according to the supplementary demands tabled by finance minister Pranab Mukherjee in the House.

Besides providing funds to NACIL, the government has earmarked additional money towards Commonwealth Games, National Calamity Contingency Fund, metro projects and food and fertiliser subsidies.

Although the government is seeking Parliament’s nod to raise public expenditure by Rs30,943 crore during 2009-10, the net impact would be Rs25,725 crore as Rs5,217 crore would be met through savings.

The government comes out with several batches of supplementary demands for grants during the course of the financial year to modify expenditure proposals made in the budget and also seek Parliament’s approval for incurring additional expenses not anticipated at the time of formulation of the budget.

For the current fiscal, the government in its budget in July had pegged the total expenditure at Rs10.20 lakh crore, which will now go up marginally by Rs25,725 crore.

In view of the upcoming Commonwealth Games next year, the government proposed to provide Rs350 crore as loan and advances to the organising committee.

The other proposals for additional expenditure include Rs1,080 crore towards Integrated Child Development Scheme (ICDS), Rs254 crore equity investment in Bharatiya Nabhikiya Vidyut Nigam Limited and Rs3,000 crore towards fertiliser subsidy.

Food department has been provided an additional Rs3,459 crore, National Calamity Contingency Fund Rs1,200 crore and Cotton Corporation of India (CCI) Rs500 crore.

The government has also earmarked an additional Rs1,675 crore for metro rail projects in Delhi, Bengaluru and Chennai.

According to the supplementary demands, Rs3,139 crore will be transferred to the National Investment Fund (NIF), set up to channelise the disinvestment proceeds into social sector schemes.

The outgo towards pension is also likely to go up by an additional Rs4,533 crore during the fiscal to Rs15,500 crore.