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Centre proposes fresh expenditure of Rs 1.67 lakh cr

Monday, 14 Sep 2020

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The Central government has sought approval from Parliament for additional net expenditure of approximately Rs 1.67 lakh crore. This will include expenditure of Rs 40,000 crore on the Mahatma Gandhi National Rural Employment Guarantee Programme.

As part of technical supplementary, the government has also decided to issue bonds worth Rs 20,000 crore to public sector banks. However, this will not bring liability in the government’s books right now.

Approval of Parliament is sought to authorise gross additional expenditure of Rs 2,35,852.87 crore. Of this, the proposals involving net cash outgo aggregate to Rs 1,66,983.91 crore and gross additional expenditure, matched by savings of the ministries/departments or by enhanced receipts/recoveries aggregates to Rs 68,868.33 crore.

The Rural Development Ministry will have the highest share in fresh expenditure with over 44 percent of total net cash outgo.

This includes Direct Benefit Transfer to Pradhan Mantri Jan Dhan Yojana Women Accounts Holders and Indira Gandhi National Old Age Pension under the scheme National Social Assistance Programme and Mahatma Gandhi National Rural Employment Guarantee Programme.

Another expenditure of Rs 10,000 crore has been proposed towards food subsidy to Decentralised Procurement Scheme States under the National Food Security Act.

In order to give relief to states going through resources crunch, the Finance Ministry has proposed additional allocation of over Rs 46,000 crore towards Post Devolution Revenue Deficit Grant and Grants-in-aid General for States Disaster Response Fund as per accepted recommendations for 15th Finance Commission.