Centre seeks Parliament nod for additional spendinghttps://indianexpress.com/article/business/business-others/centre-seeks-parliament-nod-for-additional-spending/

Centre seeks Parliament nod for additional spending

Extra spending worth Rs 36,952.86 cr needed to meet its commitments on CST compensation, food subsidy.

The Centre on Monday sought Parliamentary approval for spending an additional Rs 36,952.86 crore in the current fiscal to meet its commitments on compensation to states for central sales tax as well as food subsidy.

The second and final supplementary demand for grants for 2015-16, however, involves a net cash outgo of Rs 19,229.61 crore while the remaining would be met through internal savings and enhanced recoveries.

“Proposals involving net cash outgo of Rs 19,229.61 crore will not result in any significant variation in total estimated expenditure in revised estimates,” said the supplementary demand for grants that was tabled by finance minister Arun Jaitley.


The additional outlay toward CST compensation is pegged at Rs 10,761.41 crore and is expected to help get states on board for the roll out of the goods and services tax from April 1, 2016. Jaitley had in December last year promised Rs 11,000 crore to states. The issue has been a bone of contention between the Centre and the states and one of the biggest stumbling blocks in the introduction of GST, as states have been demanding Rs 13,000 crore arrears pending since 2010.


Meanwhile, the demand for grants has also allocated Rs 7,389.61 crore for food subsidy and Rs 687 crore for pension. Besides, an allocation of Rs 241.56 crore has also been made towards CST compensation to Union territories.

Another Rs 2,399 crore has been earmarked for the Indian Strategic Petroleum Reserve Ltd for creation of strategic oil reserve.