Govt. seeks Parliament nod for extra spending of ₹1.07 lakh cr.

Of the total, ₹15,000 cr. would go towards fertilizer subsidy

Published - March 14, 2022 09:41 pm IST - New Delhi

Nirmala Sitharaman

Nirmala Sitharaman | Photo Credit: MV

The government on Monday sought Parliament nod for net additional spending of more than ₹1.07 lakh crore, including about ₹15,000 crore towards fertilizer subsidy, in the third batch of supplementary demands for the current fiscal year.

According to the demands for grants tabled in the Lok Sabha, approval is being sought for gross additional expenditure of more than ₹1.58 lakh crore.

Of this, proposals involving net cash outgo aggregate to more than ₹1.07 lakh crore and gross additional expenditure, matched by savings of Ministries/Departments or by enhanced receipts aggregates to over ₹50,946 crore.

For payment towards fertilizer subsidy, the government has sought additional fund to the tune of ₹14,902 crore and ₹4,950 crore for capital infusion in National Bank for Financing Infrastructure and Development and recapitalisation of public sector general insurance companies, according to the document.

There are four public sector general insurance companies - New India Assurance Company, National Insurance Company Ltd. (NICL), United India Insurance Company Ltd. (UIICL) and Oriental Insurance Company Ltd. (OICL).

The government has also sought funds for recapitalisation of Regional Rural Banks, the third and final batch of supplementary demands for grants said.

For meeting additional expenditure towards payment of pension and other retirement benefits for defence personnel, the government has sought ₹1,028.50 crore additional fund.

With regard to meeting expenditure on additional transfer to GST Compensation Fund, the government has sought ₹8,141.76 crore and additional ₹150.99 crore for meeting expenditure on additional transfer to GST Compensation Fund for UTs.

For the various schemes of the Ministry of Housing and Urban Affairs including Credit Linked Subsidy Scheme (CLSS) houses for Economically Weaker Section (EWS) and Pradhan Mantri Awas Yojna, an additional ₹30,169.69 crore has been sought.

The third and final batch of Supplementary Demands for Grants for 2021-22 includes 77 Grants and one Appropriation.

In the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary tabled the supplementary demands for grants, 2021-22, and also Budget 2022-23 for the Union Territory of Jammu and Kashmir.

The total expenditure of the central government for 2021-22 is estimated at ₹37.70 lakh crore (Revised Estimate), which is higher than the Budget Estimate of ₹34.83 lakh crore.

For 2022-23, the total expenditure of the central government has been estimated at ₹39.45 lakh crore in Budget 2022-23, representing an increase of 13.3% and 4.6% over Budget Estimate and Revised Estimate of 2021-22, respectively.

Total fertilizer subsidy reached ₹85,300 crore during the nine-month period. Of this, ₹49,800 crore subsidy was on urea and the balance ₹35,500 crore on phosphatic and potassium (P&K) fertilisers.

The government's fertilizer subsidy had touched a record ₹1,38,500 crore in 2020-21. Much of the subsidy was spent on urea at ₹99,500 crore followed by P&K fertilizers at ₹39,000 crore.

The government is making available fertilisers, namely urea and different grades of P&K fertilizers to farmers at subsidised prices through manufacturers/ importers.

The subsidy on P&K fertilisers is being governed by the Nutrient-Based Subsidy (NBS) scheme with effect from April 2010.

In the case of urea, the Centre has fixed the maximum retail prices and reimburses the difference between the MRP and production cost in form of subsidy.

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