NEW DELHI :
Finance Minister Nirmala Sitharaman has sought Parliament's approval for recapitalising state owned insurance companies with ₹2,500 crores this financial year.
The move will improve the financial health of the insurers, help them meet regulatory requirements and facilitate eventual sale of government stake in them.
The capital infusion is part the first supplementary demands for grants finance minister Nirmala Sitharaman tabled in Lok Sabha on Thursday.
The government wants to spend an additional ₹21,246 crore, out of which net cash outgo will be ₹18,995.51 crore. The rest will be met by savings from other expenses.
The government also wants to spend about ₹8,820 crore for the newly formed union territories of Jammu and Kashmir and Ladakh.
The government is seeking clearance for fresh spending and for reallocation of certain unspent amounts amid an economic slowdown. The finance ministry had earlier clarified that it will not cut any welfare or capital spending. The corporate tax cut announced in September is expected to cost the exchequer about Rs1-1.5 trillion.