Govt seeks addl Rs 54.6Kcr for oil subsidy, CG, anti-Naxal ops

The Govt today sought Parliamentary approval for spending an additional Rs 54,588.63 crore this fiscal to meet the requirements arising from Commonwealth Games, anti-Naxal operations and compensating oil marketing firms.

New Delhi: The government today sought
Parliamentary approval for spending an additional Rs 54,588.63
crore this fiscal to meet the requirements arising from the
Commonwealth Games, anti-Naxal operations and compensating the
oil marketing firms.

The first Supplementary Demands for Grants, tabled in
Parliament, also seeks extra outlay for increasing the
country`s quota in the IMF, buying out the RBI stake in Nabard
and National Housing Board, and special assistance to the
trouble-torn Jammu & Kashmir.

The supplementary claims that the net additional cash
outgo of over Rs 54,000 crore will not widen fiscal deficit,
as the government kitty had swelled by over Rs 1 lakh crore
from spectrum sale, three-times more than the budget estimate
of Rs 35,000 crore.

"The net cash outgo of Rs 54,588.63 crore will not have
any adverse impact on fiscal deficit projected in the budget
estimate for 2010-11 due to excess receipts under non-tax
revenue," it said.

After the partial rollback of stimulus measures, the
government has projected that fiscal deficit will decline to
5.5 per cent of GDP in the current financial year from over
6.5 per cent last fiscal.

In fact, the government sought gross additional outgo of
Rs 68,294.30 crore, but Rs 13,705.09 crore is only technical
supplementary proposals matched by savings of ministries and
departments or by enhanced receipts or recoveries. Besides,
token provision of Rs 58 lakh is also asked for.

The government requires additional outlay of Rs 14,000
crore for compensating the oil marketing companies towards
their under-recoveries on account of subsidised sale. The
additional expenditure on this count will be through cash
outgo, it said. The budget had a provision of Rs 3,179 crore
for this.

Oil marketers like IndianOil, HPCL and BPCL suffered huge
losses as domestic oil prices were kept artificially low,
despite rise in crude prices. The decision to hike prices of
these products in June, will enable these firm to mitigate
these losses.

The supplementary also seeks additional expenditure of Rs
193.42 crore for loans to Organising Committee of Commonwealth
Games (CG) towards the opening and closing ceremonies. It also
seeks Rs 20.71 crore for security purposes during the Games,
Rs 1.44 crore for payment to BSES for electricity supply to
the RK Khanna Stadium, and Rs 0.30 crore for providing
air-conditioning in technology equipment room for the Games.

The supplementary also asks for Rs 761.47 crore of extra
expenditure on recruitment of special policeforce for the
Naxal-hit states and Rs 210 crore for procurement of Inmarsat
satellite telephone in these areas.