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Govt seeks Parliament nod for Rs 36,953 cr more spending

Last Updated 09 March 2015, 20:51 IST

The government on Monday sought an approval from Parliament for an additional Rs 36,952.86 crore as the second and final batch of supplementary demands for 2014-15.

A major part of the money will be spent in meeting the (Central Sales Tax) CST compensation to states, a commitment that takes the Centre a step closer to forming the new GST regime. However, the net cash outgo will aggregate to only Rs 19,229.61 crore, while the rest of the amount would be matched by savings and enhanced recoveries. A key feature of this year supplementary Demand for Grant is that the government has not sought any additional amount for meeting the fuel subsidy bill. The declining prices of crude oil in the global market have helped the government put a leash on its fuel subsidy bill.

Finance Minister Arun Jaitley tabled the second and final batch of Supplementary Demands for Grants 2014-15 in Parliament on Monday. Later, a finance ministry statement said that the additional expenditure will not impact the government’s fiscal deficit target of 4.1 per cent. The additional outlay toward CST compensation to the states has been pegged at Rs 10,761.41 crore, followed by food subsidy at Rs 7,389.61 crore and additional outgo for pension at Rs 687 crore.

Besides, an allocation of Rs 241.56 crore has also been made towards CST compensation to Union Territories. The supplementary demand has also earmarked Rs 2,399 crore towards Indian Strategic Petroleum Reserve for creation of strategic oil reserve.

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(Published 09 March 2015, 20:51 IST)

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