Food, fertiliser subsidies may top additional govt spending in coming supplementary demands

Food and fertiliser subsidies are likely to top government’s additional spending plan in the upcoming supplementary demands for grants. The same will be tabled by the Finance Minister in the Winter Session of Parliament starting November 29.

Repeated extensions of the Pradhan Mantri Garib Kalyan Anna Yogana and two tranches of fertiliser subsidy outside the budget are estimated to cost the government an additional Rs 1.50 lakh crore -Rs 1.60 lakh crore for the full fiscal .

In addition, the government is also likely to provide some relief to the MNREGA budget , refunds of export duties and cash for Air India.

This chunk is estimated to cost the exchequer an additional Rs 1 lakh crore or even more, depending also on the refund claims by exporters.

The government is also likely to provide Rs 5000-10,000 crore additionally for the vaccination programme. However, this could also reflect at the time of the revised estimates of the FY22 Budget on February 1.

The total additional spend by the government is estimated to be over Rs 2.50 lakh crore currently , but some part of this expense is likely to be matched by internal savings .