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Supplementary Demand for Grants Tabled in Lok Sabha

On 3 August 2010 supplementary demand for grants for 2010-11, involving an additional massive expenditure of Rs 68294.30 crore over and above the expenses budgeted for 2010-11 in February2010  was tabled in the Lok Sabha.

Oct 9, 2010 15:43 IST

On 3 August 2010 supplementary demand for grants for 2010-11, involving an additional massive expenditure of Rs 68294.30 crore over and above the expenses budgeted for 2010-11 in February2010  was tabled in the Lok Sabha. This additional expenditure comprises a net cash outgo of Rs 54588.63 crore. Of the cash outgo of Rs 54,588.63 crore, Rs 14000 crore would be used as payout to the public sector oil marketing companies due to their under-recoveries in sale of petroleum products below market prices. Rs 7337 crore would be used for rural development prijects which would include Rs 6300 crore under the Pradhan Mantri Gram Sadak Yojana. Rs 500 crore would be given to Cotton Corporation of India to reimburse losses on account of MSP operation on cotton. Rs 300 crore would go to Delhi Metro Rail Corporation. Rs 1,000 crore would be given as compensation to States for revenue loss due to phasing out of central sales tax . Rs 1,900 crore would be extendesd to RBI for acquiring stake in National Bank for Agriculture and Rural Development (Nabard) and National Housing Bank (Rs 450 crore). Rs 241 crore would be given to Coffee Board as part of coffee debt relief package 2009. The net cash outgo of Rs 54588.63 crore is not likely to have any adverse impact on the fiscal deficit projected in Budget 2010-11 due to excess receipts under non-tax revenue.