The government on Monday sought Parliament?s nod for spending Rs 19,812 crore more than originally budgeted for this fiscal, since food and fertiliser subsidy and rural development expenses rose beyond the Budget estimates.
This net additional expenditure for the fiscal ?will not result in any significant variation in the deficit projected in Budget estimate for 2010-11,? the government stated in the second supplementary demands for grants tabled in Lok Sabha by finance minister Pranab Mukherjee.
The government had originally projected a net expenditure of Rs 45,088,09 crore and a 5.5% fiscal deficit for the year.
The gross additional expenditure is at Rs 44,946 crore, but more than half of it is met by savings from various ministries. The government takes the Parliament?s clearance even for the extra expenditure, which are met by savings under ?technical supplementary demands for grants?.
According to the details given by the government, an extra Rs 5,000 crore will be spent on fertiliser subsidy, an equal amount on food and public distribution, Rs 3,000 crore on rural development initiatives like road building and for development of the North East and Sikkim, Rs 1,000 crore on highways, Rs 2,000 crore on police and Rs 278 crore on natural gas supply to the North East. An extra Rs 1,000 crore is being given to state governments as central assistance to externally-aided projects.
In the first supplementary demands for grants earlier this year, the government had sought approval for an extra spending of Rs 54,588.6 crore. It, however, said that due to ?excess receipts under non-tax revenue? (from auction of spectrum for third generation telecom services), this would not have an adverse impact on fiscal deficit.