Indian finance minister Nirmala Sitharaman recently sought parliament’s approval for an additional spending of ₹2,35,852.87 crore during this fiscal amid a dip in tax collection and a demand for more fiscal stimulus to tackle the COVID-19 impact. The supplementary demand by the minister includes a total of 54 grants and one appropriation.
This first batch of supplementary demand includes ₹20,000 crore to shore up the capital base of state-run banks (infusion was not part of the budget for fiscal 2020-21) to facilitate further lending and ₹40,000 crore towards enhanced expenditure under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).Indian finance minister Nirmala Sitharaman recently sought parliament's approval for an additional spending of ₹2,35,852.87 crore during this fiscal amid a dip in tax collection and a demand for more fiscal stimulus to tackle the COVID-19 impact. The supplementary demand by the minister includes a total of 54 grants and one appropriation.#
The government’s budgeted fiscal deficit target for this fiscal was 3.5 per cent of the gross domestic product (GDP).
Of this demand, the proposals involving net cash outgo aggregate to ₹1,66,983.91 crore and gross additional expenditure, matched by savings of the ministries and departments or by enhanced receipts and recoveries aggregates to ₹68,868.33 crore, Indian media reported.
Demand for certain new items of expenditure, including the extra allocation for MGNREGS and ₹4,000 crore for the credit guarantee scheme for MSMEs, had to be made to provide for the relief package announced earlier this year.
The government has sought ₹46,602.43 crore to provide additional allocation under the post-devolution revenue deficit grant to states, in accordance with the recommendations of the Fifteenth Finance Commission.
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