The government on Friday sought Parliament’s approval for gross additional expenditure of R11.35 lakh crore for FY17; given the savings by ministries and enhanced receipts, the net cash outgo would be only R14,787 crore.
The government on Friday sought Parliament’s approval for gross additional expenditure of R11.35 lakh crore for FY17; given the savings by ministries and enhanced receipts, the net cash outgo would be only R14,787 crore.The additional spending for which Parliament’s approval has now been sought would be panned out across food, telecom, defence and MSME sectors. It won’t lead to any extra borrowings by the Centre this fiscal year as tax receipts would be more than Budget target, sources said.
In its third and final supplementary demand for grants for FY17, the government sought to spend extra R3,500 crore under price stabilisation fund that aims to create a buffer stock of essential food items like pulses and onion to check price rise. It also made a provision of R3,293 crore towards payment of one-rank- one-pension (OROP) arrears and allowances to armed forces after implementation of the 7th pay panel award. Other major additional spending includes an allocation of R782 crore for providing grants for the creation of capital assets under Pradhan Mantri Awas Yojana. A provision of about R400 crore has been made to give salaries and repay loans of Kota-based Instrumentation Ltd, which is being closed.
The government has revised FY17 Budget expenditure to R20.14 lakh crore, R36,000 crore more than the initial estimate to continue to spend its way out of the sluggishness in economic activity in the private sector.