Government Plans to Request Parliamentary Approval for Increased Spending
NEW DELHI: Finance Minister Nirmala Sitharaman is considering seeking Parliamentary approval for additional spending due to rising fertiliser subsidies and other expenditures related to West Asia. This marks a shift from her ministry’s previous position of waiting for more data before making such assessments. With ongoing turmoil in West Asia complicating the fiscal landscape, officials have indicated that current spending levels are higher than anticipated, necessitating legislative clearance for some expenditures.
Sitharaman is pushing the Department of Investment and Public Asset Management (DIPAM) to generate additional revenue to cushion the Centre’s finances. So far, GST and direct tax revenues have remained on track, with DIPAM contributing Rs 20,272 crore, which is over one-fourth of its target with more than two-thirds of the fiscal year remaining. A successful conclusion of the IDBI Bank transaction, pending for nearly five years, could provide significant financial relief. The outcome will depend on the involvement of Emirates NDB and Fairfax, which has a stake in Catholic Syrian Bank.
The need for additional expenditure has prompted a reevaluation of the first supplementary demand for grants, particularly to address the increased fertiliser subsidy bill. While the fertiliser department has requested a doubling of its allocation, recent price softening has offered some relief. The oil subsidy, which has also surged, will require attention, though not immediately. Additionally, the Rs 1.9 lakh crore initiative for electronics manufacturing will necessitate further allocation this year, as other ministries develop replacement schemes for production-linked incentives amid expenditure pressures.
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