Government. asks parliament to approve additional spending of ₹1.07 lakh cr.

Of the total ₹15,000 cr. would go towards fertilizer subsidy

Of the total ₹15,000 cr. would go towards fertilizer subsidy

The government asked Parliament on Monday for parliamentary approval for additional net spending of more than £1.07 billion, including around £15,000 billion in fertilizer subsidies, in the third set of back-order calls for the current financial year.

Per the grant applications submitted in the Lok Sabha, approval is sought for additional gross expenditures in excess of ₹1.58 lakhcrore.

Of this, proposals total more than £1.07 billion in net cash spend and over £50,946 million in additional gross spend, met by departmental/departmental savings or improved revenue.

For the fertilizer subsidy payment, the government has requested additional funds of ₹14,902 billion and ₹4,950 million for the capital injection into the National Bank to finance infrastructure and development and the recapitalization of general public sector insurance companies, the document said.

There are four general public sector insurance companies – New India Assurance Company, National Insurance Company Ltd. (NICL), United India Insurance Company Ltd. (UIICL) and Oriental Insurance Company Ltd. (OICL).

The government has also requested funds for the recapitalization of regional rural banks, the third and final series of additional grant applications said.

To cover additional expenses to pay pensions and other post-employment benefits for defense personnel, the government has requested additional funding of ₹1,028.50 crore.

In relation to covering the expenses of additional transfers to the GST Compensation Fund, the Government has requested ₹8,141.76 million and an additional ₹150.99 million to cover the expenses of additional transfers to the GST Compensation Fund for UTs.

An additional £30,169.69 million has been requested for the Department of Housing and Urban Affairs’ various programs including the Credit Linked Subsidy Scheme (CLSS), Homes for the Economically Weaker Section (EWS) and Pradhan Mantri Awas Yojna.

The third and final batch of supplemental grant applications for 2021-22 includes 77 grants and one appropriation.

In the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary presented the additional grant applications 2021-22 and also the budget 2022-23 for the Union Territory of Jammu and Kashmir.

Total central government spending for 2021-22 is estimated at 37.70 lakhcrore (revised estimate), which is higher than the budget estimate of 34.83 lakhcrore.

For 2022-23, total central government expenditure in the 2022-23 budget was estimated at 39.45 lakhcrore, an increase of 13.3% and 4.6% respectively over the 2021-22 budget estimate and the revised estimate.

The total fertilizer subsidy reached ₹85,300 crore during the nine month period. Of this, 49,800 crore of subsidies went to urea and the remainder 35,500 crore to phosphate and potassium fertilizers (P&K).

The government’s fertilizer subsidy had hit a record ₹1.38,500 crore in 2020-21. Much of the subsidy was spent on urea at 99,500 crore, followed by P&K fertilizer at 39,000 crore.

The government makes fertilizers, particularly urea and various grades of P&K fertilizers, available to farmers at subsidized prices through manufacturers/importers.

From April 2010, the subsidization of P&K fertilizers will be regulated by the Nutrient-Based Subsidy (NBS) scheme.

In the case of urea, the center has set maximum retail prices and reimburses the difference between MRP and production costs in the form of a subsidy.

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