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New spending for FY22 from FM’s latest package to be less than Rs 50,000 crore

If one leaves aside the credit measures and announcements which had already been made earlier, then the extra outlay for 2021-22 as a result of the new announcements will be around Rs 48,900 crore, our calculations show.

June 29, 2021 / 09:46 PM IST
Union Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman

As per the Finance Ministry, relief package by Finance Minister Nirmala Sitharaman on June 28 is worth Rs 6.29 lakh crore.

However, if one leaves aside the measures on the credit and loan side, discounts the older measures which were repeated, and examines only the additional expenditure in 2021-22, the size of the fiscal outlay does not exceed Rs 50,000 crore, Moneycontrol’s calculations show.

Some of the major announcements like credit guarantee schemes for health sector, tourism, small lenders and others are on the credit side, and do not involve any additional spending by the exchequer.

The measures on additional subsidy for fertilisers and extension of the free foodgrain scheme, while involving major additional expenditure, are older announcements, as Sitharaman herself admitted. These have been written about before here and here.