Govt seeks parliament's nod for Rs 1.58 lakh crore additional spend in FY22

"Of this, the proposals involving net cash outgo aggregate to Rs 1,07,408.15 crore and gross additional expenditure matched by savings of the Ministries/departments or by enhanced receipts/recoveries aggregates to Rs 50,946.52 crore," read the third and final batch of supplementary demands for grants tabled in Lok Sabha on Monday.

The supplementary demands for grants include additional spending on account of fertilizer subsidy, transfer to GST Compensation Fund and additional expenditure for meeting targeted Credit Linked Subsidy Scheme (CLSS) houses for Economically Weaker Section(EWS)/ Lower Income Group (LIG) category under Pradhan Mantri Awas Yojna- Urban(PMAY-U).

The government has sought approval from parliament to make the additional expenditure of Rs 14,902 crore on fertilizer subsidy during the current financial year.

For meeting expenditure on additional transfer to GST Compensation Fund, the government has sought approval of Rs 8,141.76 crore.

"The higher expenditure in the final supplementary is likely to absorb the expected buoyancy in gross tax revenues above the revised estimates. Nevertheless, a possible shortfall in capital spending may offset any spillover in the LIC IPO inflows to FY2023," said ICRA Chief Economist Aditi Nayar.