OPEN APP
Home >Politics >Policy >Lok Sabha approves additional spending of 23,675 cr

The Lok Sabha on Wednesday passed amid ruckus the first batch of supplementary demands for grants and relevant appropriation bills, authorizing the government to spend an additional 23,675 crore in FY22 in view of the increased spending on healthcare amid the covid-19 pandemic.

On 20 July, Union finance minister Nirmala Sitharaman sought Parliament’s nod for gross additional spending of 1.87 trillion though the net cash outgo was only 23,675 crore, with the rest met through savings or higher receipts and recoveries. A big chunk of the gross additional spending is transferring loans of around 1.59 trillion raised from the market as part of the Centre’s commitment to compensate states for the revenue shortfall under the goods and services tax.

Around 72% of the additional spending, involving net cash outgo of 23,675 crore projected in the first supplementary demand goes to the healthcare sector.

The rest will be used for loans to Air India, sugar mills, and to lenders for the compound interest support scheme for loan moratorium, according to the document tabled by Sitharaman.

Fresh funds were allocated under the rural health mission for covid emergency response and preparedness. The cabinet on 8 July had cleared the covid package in view of the possibility of a third wave of the pandemic hitting the country. It was a continuation of a similar package offered during the first wave of the pandemic.

The bills were passed without any debate as the opposition members continued their protest against the Pegasus snooping row and three new farm laws.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout