NEW DELHI: The Centre on Thursday sought Parliament’s approval for added spending of Rs 85,315 crore, a large chunk of which will be used to compensate states for revenue losses because of rollout of the products and services tax (GST) and phasing out of the central gross sales tax.
The govt presented the fourth supplementary call for for grants in Parliament on Thursday and out of the overall cash spending, it sought acclaim for Rs 62,716 crore to compensate states and Union territories because of revenue shortfall after GST rollout. This is a switch from the compensation fund to the general public account the place GST cess on tobacco, cushy drinks, luxurious vehicles and coal is parked.
Although the cash is paid for “revenue loss”, many states, that have upper collections than remaining 12 months, can even receive compensation because the Centre had guaranteed 14% enlargement in revenues for five years.
The Centre sought Parliament’s acclaim for gross further expenditure of over Rs 9 lakh crore, some of which might be matched through financial savings of a few ministries. “Of this, the proposals involving internet cash outgo mixture to Rs 85,315 crore and gross further expenditure, matched through financial savings of the ministries and departments through enhanced receipts/recoveries, aggregates to Rs eight,21,519 crore,” according to the record.
Among the most important pieces of expenditure, Rs 9,260 crore used to be for additional spending on pension within the defence ministry. Over Rs 5,700 crore used to be for added spending on interest bills on market loans, particular deposit of nongovernment provident fund, gold monetisation scheme and different programmes.
The govt has already budgeted for the next fiscal deficit of three.5% of GDP for the current financial 12 months, which ends in March. “A considerable part of the net cash outgo proposed below the fourth batch of supplementary calls for for grants, 2017-2018, seems to be technical in nature, led through the switch of GST compensation cess receipts into the non-lapsable GST Compensation Fund within the public account,” stated Aditi Nayar, essential economist at rankings agency ICRA.
The govt presented the fourth supplementary call for for grants in Parliament on Thursday and out of the overall cash spending, it sought acclaim for Rs 62,716 crore to compensate states and Union territories because of revenue shortfall after GST rollout. This is a switch from the compensation fund to the general public account the place GST cess on tobacco, cushy drinks, luxurious vehicles and coal is parked.
Although the cash is paid for “revenue loss”, many states, that have upper collections than remaining 12 months, can even receive compensation because the Centre had guaranteed 14% enlargement in revenues for five years.
The Centre sought Parliament’s acclaim for gross further expenditure of over Rs 9 lakh crore, some of which might be matched through financial savings of a few ministries. “Of this, the proposals involving internet cash outgo mixture to Rs 85,315 crore and gross further expenditure, matched through financial savings of the ministries and departments through enhanced receipts/recoveries, aggregates to Rs eight,21,519 crore,” according to the record.
Among the most important pieces of expenditure, Rs 9,260 crore used to be for additional spending on pension within the defence ministry. Over Rs 5,700 crore used to be for added spending on interest bills on market loans, particular deposit of nongovernment provident fund, gold monetisation scheme and different programmes.
The govt has already budgeted for the next fiscal deficit of three.5% of GDP for the current financial 12 months, which ends in March. “A considerable part of the net cash outgo proposed below the fourth batch of supplementary calls for for grants, 2017-2018, seems to be technical in nature, led through the switch of GST compensation cess receipts into the non-lapsable GST Compensation Fund within the public account,” stated Aditi Nayar, essential economist at rankings agency ICRA.
Govt seeks Rs 63,000 crore to cover GST loss
![Govt seeks Rs 63,000 crore to cover GST loss]()
Reviewed by Kailash
on
March 12, 2018
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