Govt may put off tabling additional spending demand for winter session

Setting a precedent of sorts,the finance ministry had in 2012-13 decided not to seek additional funds in the monsoon session.

The Centre will remain cautious about more spending as it tries to trim its fiscal deficit and may choose to forego tabling the first supplementary demand for grants in the ongoing monsoon session.

A final decision is yet to be taken but it could be that we do not table the first supplementary demand for grants right now, two senior officials said,adding that alternatively,the government would keep its extra spending at the minimum possible level or table just a technical demand for grants. A technical demand for grants does not involve any additional money but just changes the spending heads for the funds already approved earlier.

Setting a precedent of sorts,the finance ministry had in 2012-13 decided not to seek additional funds in the monsoon session but had waited till the winter session for the go-ahead on the more spending.

The situation has to be reviewed and the plan will be finalised by early next week, one of the officials said,adding that the government may decide to roll over the first supplementary demand for grants to the winter session. The supplementary demand for grants however is at present included in Parliamentary agenda for the ongoing session. The Centres total expenditure is pegged at Rs 16,65,297 crore in 2013-14 according to the Union Budget,marking a 16.4 per cent rise over the revised expenditure for last fiscal.

However,the finance ministry is expected to require funds as it could be facing a significantly higher oil subsidy burden on the back of the sharp depreciation in the rupee as well as other minor spending heads. These in turn could put a strain on the Centres finances making it tough to meet the fiscal deficit target of 4.8 per cent of the GDP in 2013-14.

Austerity measures and spending curbs announced last fiscal are still in force. The government continues to keep a tight leash on its expenditure, he said.

Finance minister P Chidambaram had last month promised that the government would not overshoot the fiscal deficit target despite concerns over additional spending.