The spending would include ₹62,000 crore infusion into AIAHL, Air India's asset holding company
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The Government on Friday sought Parliament's nod to infuse over ₹62,000 crore into the company that holds residual assets and liabilities of Air India after its privatisation, as part of over ₹3.73 lakh crore additional spending planned in the current financial year.
The extra spending would include ₹58,430 crore by way of additional fertiliser subsidy, ₹53,123 crore towards payment of pending export incentives and ₹22,039 crore to rural development ministry for transfer to National Rural Employment Guarantee Fund.
Minister of State for Finance Pankaj Chaudhary tabled the second batch of supplementary demands for grants tabled in Lok Sabha envisaging a net cash outgo of over ₹2.99 lakh crore and ₹74,517 crore extra expenditure would be matched by savings by different ministries.
As per the document, ₹62,057 crore would be given to the Civil Aviation Ministry for equity infusion in Air India Assets Holding Company (AIAHL) for re-payment of past government guaranteed borrowing and past dues/liabilities of Air India.
Besides, an additional ₹2,628 crore would be given towards loans and advances to Air India for recoupment of advance from Contingency Fund of India.
The additional fertiliser subsidy include ₹43,430 crore on account of payment towards indigenous and imported Phosphatic and Potassic (P&K) Subsidy and ₹15,000 crore towards urea subsidy scheme.
Besides, the Department of Food and Public Distribution would be given an additional ₹49,805 crore for meeting expenditure towards various schemes of food storage and warehousing.
About ₹2,400 crore would be given to Department of Commerce for meeting expenditure towards subsidies under the 'Interest Equalisation Scheme’, and Investment under the Export Credit Guarantee Corporation (ECGC) scheme, among others.
Another over ₹5,000 crore and over ₹4,000 crore has been earmarked for additional spending by the Ministries of Defence and Home, respectively.
The 2021-22 Budget had projected government's total expenditure at ₹34.83 lakh crore. But this is expected to overshoot considering the two batches of supplementary demands for grants presented by the government so far.
The government had in August received Parliament nod for net additional spending ₹23,675 crore in the first batch of supplementary demands for grants.