FM seeks approval for `3.73L cr extra spending

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday moved the second batch of Supplementary Demands for Grants for consideration in the Rajya Sabha that authorises the government to spend an additional Rs 3.73 lakh crore during the current fiscal.

The Lok Sabha has already approved the demand and the Appropriation (No.5) Bill, 2021 on Monday.

The Upper House is likely to clear the Bill on Wednesday.

The Budget 2021-22 had projected the government's total expenditure at Rs 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 extra spending includes infusion of over Rs 62,000 crore into the company that holds residual assets and liabilities of Air India; Rs 58,430 crore by way of additional fertiliser subsidy; Rs 53,123 crore towards payment of pending export incentives; and Rs 22,039 crore to the rural development ministry for transfer to the National Rural Employment Guarantee Fund.

Besides, the Department of Food and Public Distribution would be given an additional Rs 49,805 crore for meeting expenditure towards various schemes of food storage and warehousing.

About Rs 2,400 crore would be given to the 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. Over Rs 5,000 crore and more than Rs 4,000 crore have been earmarked for additional spending by the ministries of defence and home, respectively. Participating in the discussion on the Appropriation (No.5) Bill, 2021, Sushil Kumar Modi (BJP) stated that not just India, every major economy like the US, UK, Russia and EU are impacted by inflation in the post-pademic period.

Stating that the situation in India has been much better as compared to other regions, Modi said,"If inflation goes up across the globe we cannot remain aloof...we are part of the global supply chain."

He also noted that in order to reduce the prices of petroleum products, various BJP-ruled states have reduced VAT after the Centre's excise reduction, but states like Maharashtra, West Bengal and Jharkhand were yet to take similar steps.

He also attacked the previous government for the current situation of Air India and noted that the Modi government is doing all it can to bring the company back on its feet.

Various parties including AIADMK, TDP, and YSRCP supported the bill while major opposition parties including Congress and TMC walked out from the House demanding division of votes as they had moved a motion to send the electoral reform bill to a Select Committee of Rajya Sabha.

Arun Singh (BJP) said the government had initiated timely measures to provide immediate relief to the poor amid disruptions caused by the COVID-19 outbreak. From free ration to strengthening of healthcare infrastructure, a number of initiatives have been taken by the Narendra Modi government for the benefit of common man, which won the people's trust, he said.

"Today the world is looking at India. India is seen as an attractive destination for investments. Record FDI inflow is coming to India...because Modi government is transparent, and takes decisions transparently," Singh said. Syed Zafar Islam (BJP) said extraordinary times require extraordinary decisions, and noted that during the pandemic, the government has taken extraordinary measures to help the poor.

From providing ration to marginalised sections of the society, to initiatives for improvement of infrastructure and modernisation of Indian Railways, as also policy measures to promote small and large businesses -- the success of the government's decisions have had a visible, positive impact on the Indian economy, he said.

All key parameters and benchmarks are highlighting that Indian economy is swiftly back on track, Islam added.

Taking part in the discussion, Vinay P Sahasrabuddhe (BJP) condemned the behaviour of the Opposition members in the House during the session.