Supplementary Demands for Grants provide for Rs 41,000 crore for recap of PSBs
The government on Thursday presented in the Lok Sabha the second Supplementary Demands for Grants for 2018-19 for gross additional expenditure of Rs. 85,948.86 crore which includes Rs, 41,000 crore for recap of the Public Sector Banks (PSBs) that have been hit hard by Non-Performing Assets (NPAs).
The demands, tabled by Finance Minister Arun Jaitley, contain proposals involving a net cash outgo aggregate to Rs.15,069.49 crore and gross additional expenditure, matched by savings of the ministries and departments or by enhanced receipts and recoveries, aggregating Rs.70,882.21 crore.
The demands for grants involve meeting expenditure towards the acquisition of RBI's stake in the National Housing Bank (Rs.1,450 crore) and recapitalisation of PSUs through issue of government securities to the tune of Rs.41,000 crore.
Taking into account the additional receipts of Rs.41,000 and after utilising the savings available within the same section of the grant, the expenditure will not entail any cash outgo, the government said in the explanatory note.
A sum of Rs. 80.17 crore has been sought for subsidising the Pradhan Mantri Vaya Vandan Yojana (PMVVY) for subsidy to elderly persons aged 60 and above a scheme being implemented by the LIC.
The Regional Rural Banks will also get Rs. 245 crore for recapitalisation. Air India will get an equity infusion of Rs. 2,345 crore under a Turn-Around Plan. -IANS