Lok Sabha approves for Rs 34,724 crore extra spend in FY12

Lok Sabha today approved additional gross expenditure of Rs 34,724 crore for 2011-12 with a government assurance that the net cash outgo of Rs 9,016 crore would not push fiscal deficit beyond budget estimates.

This is the first batch of supplementary demand for grants in the current year.

Justifying the additional expenditure this fiscal, Finance Minister Pranab Mukherjee said, "While presenting the budget, I could not anticipate the increase in expenditure like on MPLAD scheme, clean energy and other government initiatives like BPL survey."

As the government aims to stick to the fiscal deficit target of 4.6% of GDP in 2011-12, it sought additional resources in a conservative way.

On the issue of keeping a tab on fiscal deficit, Mukherjee assured the House that the situation is under control as the direct and indirect revenues growth remained satisfactory at 26% and 30%, respectively, so far this fiscal.

Mukherjee, however, cautioned, "if industrial growth will go down, then we will be affected."

"We are trying to unlock the money stashed in tax disputes to improve the resources. I do hope that despite difficulties the growth momentum would be maintained," he said.

The additional demands for grants include Rs 2,300 crore for Rural Development Ministry for meeting expenditure for surveys on BPL, a crucial requirement for implementing the proposed National Food Security Act.

The additional provision of about Rs 10,612 crore is for providing loans to International Monetary Fund. Rs 410.73 crore was asked for providing payment of ex-gratia to victims of Bhopal gas tragedy.