NEW DELHI: The Centre on Thursday sought Parliament’s approval for added spending of Rs 85,315 crore, a big chew of which shall be used to compensate states for earnings losses because of rollout of the goods and services and products tax (GST) and phasing out of the central gross sales tax.
The govt offered the fourth supplementary call for for grants in Parliament on Thursday and out of the overall cash spending, it sought approval for Rs 62,716 crore to compensate states and Union territories because of earnings shortfall after GST rollout. This is a transfer from the reimbursement fund to the public account the place GST cess on tobacco, soft drinks, luxury cars and coal is parked.
Although the cash is paid for “earnings loss”, many states, that have higher collections than remaining yr, can even receive reimbursement as the Centre had guaranteed 14% growth in revenues for 5 years.
The Centre sought Parliament’s approval for gross additional expenditure of over Rs nine lakh crore, a few of which might be matched via financial savings of some ministries. “Of this, the proposals involving internet cash outgo aggregate to Rs 85,315 crore and gross additional expenditure, matched via financial savings of the ministries and departments via enhanced receipts/recoveries, aggregates to Rs 8,21,519 crore,” in line with the document.
Among the foremost pieces of expenditure, Rs nine,260 crore was for additional spending on pension in the defence ministry. Over Rs 5,700 crore was for added spending on hobby bills on market loans, special deposit of nongovernment provident fund, gold monetisation scheme and other programmes.
The govt has already budgeted for a better fiscal deficit of 3.5% of GDP for the current financial yr, which leads to March. “A substantial part of the web cash outgo proposed under the fourth batch of supplementary demands for grants, 2017-2018, appears to be technical in nature, led via the transfer of GST reimbursement cess receipts into the non-lapsable GST Compensation Fund in the public account,” stated Aditi Nayar, major economist at scores company ICRA.
The govt offered the fourth supplementary call for for grants in Parliament on Thursday and out of the overall cash spending, it sought approval for Rs 62,716 crore to compensate states and Union territories because of earnings shortfall after GST rollout. This is a transfer from the reimbursement fund to the public account the place GST cess on tobacco, soft drinks, luxury cars and coal is parked.
Although the cash is paid for “earnings loss”, many states, that have higher collections than remaining yr, can even receive reimbursement as the Centre had guaranteed 14% growth in revenues for 5 years.
The Centre sought Parliament’s approval for gross additional expenditure of over Rs nine lakh crore, a few of which might be matched via financial savings of some ministries. “Of this, the proposals involving internet cash outgo aggregate to Rs 85,315 crore and gross additional expenditure, matched via financial savings of the ministries and departments via enhanced receipts/recoveries, aggregates to Rs 8,21,519 crore,” in line with the document.
Among the foremost pieces of expenditure, Rs nine,260 crore was for additional spending on pension in the defence ministry. Over Rs 5,700 crore was for added spending on hobby bills on market loans, special deposit of nongovernment provident fund, gold monetisation scheme and other programmes.
The govt has already budgeted for a better fiscal deficit of 3.5% of GDP for the current financial yr, which leads to March. “A substantial part of the web cash outgo proposed under the fourth batch of supplementary demands for grants, 2017-2018, appears to be technical in nature, led via the transfer of GST reimbursement cess receipts into the non-lapsable GST Compensation Fund in the public account,” stated Aditi Nayar, major economist at scores company ICRA.
Covering GST loss: Government seeks Parliament nod for Rs 63,000 crore
![Covering GST loss: Government seeks Parliament nod for Rs 63,000 crore]()
Reviewed by Kailash
on
March 09, 2018
Rating:
