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The Union government has sought Parliamentary approval to provide Rs 41,000 crore to public sector banks during the current fiscal, ie, 2018-19.
The amount will be used for the "recapitalisation of Public Sector Banks through issue of Government Securities", and the details were given in Supplementary Demands for Grants.
The second installment of such grants was laid in the Lok Sabha on Thursday.
Now, there will be debate followed by passage. Once cleared by both houses of the Parliament and accented by the President, the amount prescribed will be used to recapitalise the banks.
Overall, the Government has sought parliamentary approval to spend Rs 85,948.49 crore. This includes Rs 70,882.21 crore of the savings by various ministries and departments which means that the net cash outgo is Rs 15,065.49 crore. This is the fresh expenditure.
The Finance Ministry says this expenditure will not have any impact on fiscal deficit and that the Union government will be able to keep the deficit at 3.3 per cent of GDP.
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