Govt seeks Rs 38,622 cr more

MID-YEAR REVIEW OF THE ECONOMY

Parliament's nod sought for first supplementary demand for grants.

The government today sought Parliament's approval for a gross additional expenditure of Rs 38,622 crore in the first supplementary demand for grants for 2004-05, with the net cash outgo estimated at Rs 5,063 crore.

Of the total expenditure in the supplementary demand, Rs 33,558 crore will be matched by savings by various central ministries and departments or through enhanced recoveries. The Centre had estimated an expenditure of Rs 477,829 crore for the current fiscal year.

The supplementary demand for grants is not expected to increase the Centre's fiscal and revenue deficits, as matching savings in expenditure in the normal course of events are expected to neutralise the effect, according to the mid-year economic review tabled in Parliament.

Of the cash outgo, Rs 1,000 crore is proposed to be transferred to the Universal Service Obligation (USO) Fund for providing telephones in rural areas.

The government has also earmarked Rs 254.87 crore for buying out the Reserve Bank of India's (RBI's) 15 per cent stake in the Infrastructure Development Finance Company at the book-value price of Rs 254.87 a share. It also proposes to take over the RBI's subordinate debt of Rs 350 crore at face value.

Further, the government intends to chip in with Rs 500 crore for additional expenses of the Delhi Metro Rail Corporation.

Another Rs 185.70 crore have been provided for voluntary retirement schemes in public sector companies.

A sum of Rs 2,000 crore has been set aside for the Sarva Shiksha Abhiyan and Rs 300 crore for additional expenditure on pensions because of the merger of 50 per cent dearness allowance with the pay of government employees.

The Centre has also planned to allocate Rs 400 crore for the Indira Awas Yojana in Bihar, which is scheduled to go to the polls early next year.

It has budgeted for an additional Rs 22,625 crore towards the repayment of the amount received from the states, which participated in the debt swap scheme, to the National Small Savings Fund.

The scheme will not result in any cash outgo for the Centre and is part of the gross amount of Rs 33,558.23 crore.

Another such book entry will deal with the transfer of Rs 4,625 crore as additional gross budgetary support to state Plans.