Centre seeks parliament's approval for Rs 2.36 lakh crore additional spending

Of the additional expenditure of Rs 2.36 lakh crore, the most notable expenditures include Rs 44,340 crore to provide additional allocation under Post Devolution Revenue Deficit Grant to states

Government has sought parliament's approval for an additional gross expenditure of Rs 2.36 lakh crore in the current financial year. Government today released the first batch of Supplementary Demands for Grants for 2020-2021, which shows that the additional gross expenditure of Rs 2.36 lakh crore would involve a net cash outgo of Rs 1.67 lakh crore while the rest would be funded by Rs 68,868 crore savings made by the various ministries and government departments.

Of the additional expenditure of Rs 2.36 lakh crore, the most notable expenditures include Rs 44,340 crore to provide additional allocation under Post Devolution Revenue Deficit Grant to states, Rs 32,000 crore to MGNREGS and Rs 30,957 crore for Direct Benefit Transfer to Pradhan Mantri Jan Dhan Yojna Women Accounts Holders.

An additional allocation of Rs 20,000 crore has been made for recapitalisation of Public Sector Banks through issue of Government Securities, and Rs 10,000 crore for food subsidy under the National Food Security Act.

The government has also made additional allocation of Rs 8,000 crore for Grants for Creation of Capital Assets.

Rural development ministry got the maximum additional allocation of around Rs 74,000 crore, while finance ministry received an additional allocation of Rs 72,000 crore.

Also read: Rs 65,560 crore to fight future pandemics! Centre to invest in research, healthcare

Also read: Bank recapitalisation: Govt seeks nod to infuse Rs 20,000 crore in PSBs