Govt seeks additional Rs 32,120 cr for 2012-13

The government on Friday sought approval of the Lok Sabha for an additional expenditure of Rs 32,120 crore during the current financial year, mainly to meet increasing oil subsidy Bill and provide Rs 2,000 crore to ailing Air India.

“Approval of Parliament is sought to authorise gross additional expenditure of Rs 32,119.50 crore,” said the document relating to first batch of supplementary demands for grants, 2012-13, tabled in the lower House by Finance Minister P Chidambaram.

The proposals envisaged in the demands entail a cash outgo of Rs 30,804 crore, while the rest be matched by savings by different ministries and departments.

Of the total additional outgo, Rs 28,500 crore will be used to compensate oil marketing companies on under-recoveries towards sale of subsidised petroleum products. With the additional grant, the total funds earmarked for the oil subsidy will soar to about Rs 72,260 crore.

It further said Rs 2,000 crore had been earmarked in the supplementary grant for equity infusion in Air India as part of a turnaround plan and restructuring package.

The government has also sought a token amount in the supplementary for discharging its liability towards the International Monetary Fund. Under the new arrangements, India had to pay Rs 11,295 crore, it said, adding “as savings are available in the same section of the Grant, a token supplementary is sought”.

Meanwhile, talking to reporters Chidambaram on Friday said the government would be able to accommodate the enhanced spending within the budgeted borrowing plan.