Government asks parliament to approve additional spending of 23,675 crore rupees

NEW DELHI: Finance Minister Nirmala Sitharaman on Tuesday called on Parliament to spend an additional net amount of Rs 23,675 crore, including Rs 17,000 crore for the Ministry of Health, in the current fiscal year .
According to the first batch of additional grant applications filed in Lok Sabha by Sitharaman, although the gross additional expenditure is over Rs 1.87 lakh crore in 2021-2022, the actual cash outflow will only be 23,674, Rs 81 crore as the remaining expenses will be through savings and higher revenue and collections.
A substantial part of the total gross expenditure is intended to be transferred to the States for the deficit offsetting the tax on goods and services. Rs 1.59 lakh crore would be transferred to the states as a back-to-back loan instead of the deficit offsetting the GST. However, this will not result in any cash outflow.
“As the back-to-back loan must be covered by equivalent capital receipts, the (…) expenditure will not result in any additional outflow,” the additional grant requests said.
To respond to the various health preparations related to Covid and others, an additional expenditure of Rs 16,463 crore has been allocated to the Ministry of Health and Family Welfare.
An additional Rs 526 crore was donated to the Department of Health Research for Emergency Outbreak Preparedness and Response.
Approval of Rs 2,050 crore for the Ministry of Civil Aviation is sought which includes Rs 1,872 crore for loans and advances to Air India for the recovery of the India Emergency Fund advance.
The cash outflow also includes Rs 1,100 crore for the Ministry of Consumer, Food and Public Distribution to provide sugar mill assistance for the 2019-2020 sugar season.
In addition, a nod for spending an additional Rs 1,222 crore under the main pharmaceuticals department was requested for the waiver of the government loan from Indian Drugs and Pharmaceuticals Ltd (Rs 889.50 crore) and the waiver of government loan (Rs 107.49 crore) and accrued interest (Rs 86.22 crore) from Bengal Chemicals & Pharmaceuticals Ltd.
The excess expense grant for the pharmaceutical department also includes additional expenses to settle pending employee contributions from Hindustan Antibiotics Ltd (Rs 118 crore) and Rajasthan Drugs and Pharmaceuticals Ltd (Rs 21 crore) as a loan.
The additional expenses are in addition to the total expenses of Rs 34.83 lakh crore projected in the budget for 2021-2022.

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