The Finance Ministry has announced one of the largest cash supplementary demands for grants in recent times, with an additional expenditure of close to Rs 3 lakh crore for the current fiscal.
As much as Rs 2.48 lakh crore or 82 percent of this additional expenditure is on account of payment for Air India dues, fertiliser subsidy, exporter refunds, food subsidy, and MNREGA. This pushes the overall size of the budget to Rs 37.82 lakh crore from the current estimate of Rs 34.83 lakh crore, a big increase of 8.6 percent before the financial year is over.
This, however, may not be the last of the additionalities for this FY, with fertiliser and food subsidy likely to witness further increases in the revised budget estimates that will be presented on February 1.
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The biggest single ticket additional expense is on account of Air India’s liabilities amounting to over Rs 64,000 crore, which were not budgeted. The government has provided the full outgo in one go, indicating it is keen to clear all pending dues to banks and the airline now that Air India has a private owner.
The second big-ticket outgo is on account of an additional fertiliser subsidy of over Rs 58,000crore. This also includes an additional urea subsidy of Rs 15,000 crore, something which experts had not factored in earlier as the focus was only on extra funds for payment of DAP subsidies.
The third big outgo of over Rs 53,000 crore is towards government’s promise to settle exporter refunds. Close to Rs 50,000 crore additional towards food subsidy and Rs 22,000 crore additional for MNREGA, totalling up to a neat Rs 2.48 lakh crore.
Apart from these big five, the government is also spending additional amounts on a host of ministries, starting with the Housing and Urban Development Ministry, which will get a Rs 14,000 crore increase in the PMAY budget.
Water resources, textiles, defence, police modernisation are among the other ministries that will receive additional funds.
Government sources have indicated to CNBCTV18, despite very strong tax revenues there is likely to be a small slippage in the fiscal deficit due to the spike in expenditure and that the scope of fiscal savings is limited.Internet Explorer Channel Network