The Lok Sabha yesterday passed the supplementary demands for grants totalling Rs 3936.55 crore covering 47 ministries and departments. The demands and the relevant appropriation bill were passed by a voice vote.
Replying to a discussion, finance minister P Chidambaram assured members that vital sectors, including defence and power, would not face shortage of funds. Chidambaram said the government had to strike a balance among competing demands from various ministries like defence, law and order, social infrastructure and industry.
He said resources were scarce and demands were high. However, the government has been able to provide funds for vital sectors like power, education, health, drinking water, sanitation and basic minimum services.
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The minister said the burden on the government due to implementation of the Fifth Pay Commission report would be about Rs 1,600 crore to Rs 2,000 crore though a large amount of it would be ploughed back through the provident fund which would have to be given on the arrears.
He said another area where the government would not turn down any demands resources was strengthening of the defence and paramilitary forces as it was linked to national security.
Money would not be a constraint in the power sector too and whatever amount was required for the public sector would be given, he said.
Chidambaram said the bulk of the resources would be for investment aimed at enhancing the growth rate from 7 to 8 per cent.
He said the Jute Corporation of India has been given Rs 20 crore to procure 33,000 quintals of jute to enable it to continue its intervention so as to maintain the support price of jute. The jute price remained at a higher level for the last three to four years and only now it had come down.
On the demand to raise the amount on plant and equipment for small-scale industry from Rs 60 lakh to Rs 3 crore, he said a decision would be taken in a few days.