The Finance Minister, Mr Pranab Mukherjee, has sought Parliament nod for gross additional spend of Rs 63,180.24 crore during the remaining months of current fiscal, including net cash spend of Rs 56,848.46 crore.
Of the estimated total net cash outgo of Rs 56,848.46 crore, the Centre plans to spend Rs 30,000 crore as compensation to oil marketing companies for under-recoveries in sale of petroleum products. There will also be an outgo of Rs 13,779 crore towards fertiliser subsidies, according to the second batch of supplementary demand for grants for 2011-12 tabled by Mr Mukherjee in Lok Sabha today.
This gross additional spend of Rs 63,180.24 crore would imply that achieving the fiscal deficit target of 4.6 per cent for the current fiscal would become even more difficult, say economy watchers.
The Finance Minister had recently cautioned against over-stretching so as to achieve the fiscal deficit target as it may hurt economic growth.