Govt plans 21.7 bn extra spending

The government on Monday sought parliamentary approval for an extra 21.7 billion in spending for the current fiscal year to March, including funds for a farm debt waiver scheme, food and fertiliser subsidies. Analysts said the demand was above their expectations and would result in bigger borrowings, putting pressure on government finances and widen the fiscal deficit to more than the budget target of 2.5 per cent of gross domestic product. The finance ministry told parliament gross additional spending would be Rs 2.37 trillion during 2008-09, while contributions from various ministries would add up to only about Rs 1.32 trillion.