Govt seeks parliamentary approval for additional Rs 1.67 trn expenditure

The additional requirement includes Rs 40,000 cr for works under MGNREGA and Rs 20,000 cr for bank recapitalisation

The central government on Monday sought Parliament nod to incur additional expenditure of Rs 1.67 trillion for 2020-21 (FY21) to recapitalise banks, fight Covid-19, and fund various welfare schemes announced for vulnerable sections.

The first batch of supplementary demand for grants, tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman, entails additional expenditure of Rs 2.36 trillion, but around Rs 68,868 crore will be met through savings in other schemes, showed the paper tabled in the House.

Generally, technical savings are higher than the net cash outgo in the supplementary demands, but this time around, the latter is more due to