The Finance Minister said that the government is keeping an eye on inflation, Parliament approved the additional expenditure of 3.25 lakhs

Inflation: Finance Minister Nirmala Sitharaman has said that the government is constantly monitoring inflation. The Finance Minister said that the inflation in the country is completely due to the prices of fuel and fertilizers, which is purely an external factor. Responding to the discussion on supplementary demands for grants in the Rajya Sabha, the Finance Minister said that the wholesale inflation rate has come down to a 21-month low. In November, the retail inflation rate has come down to 5.88 percent.

Rs 3.25 lakh crore additional expenditure approved

The Rajya Sabha has sent back the supplementary demands for grants to the Lok Sabha. After which the government will be able to spend an additional Rs 3.25 lakh crore in the current financial year. The Finance Minister said that this supplementary demand has been brought from food security in the country, to provide food to the farmers and to strengthen the Indian economy. The Finance Minister said that due to the tremendous increase in tax collection, the government will be helped in meeting the additional expenditure.

Reduction in NPA

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The Finance Minister told the House that by March 2022, the NPA of the banks has reached the lowest level of 5.9 per cent in 6 years. He said that despite the impact of Corona, the efforts of the government have helped in boosting the economy without going into recession. The Finance Minister said that policies like PLI have helped in increasing private investment.

What is Supplementary Demand for Grants?

Grants are required when the amount already approved through the Appropriation Act falls short for a particular service for the current financial year. Before the end of the financial year, the government brings this grant to the parliament through a bill and gets it passed by the house. That is, approval is taken from the Parliament for additional expenditure. This time the government has come up with a supplementary demand for grant for additional expenditure of Rs 3.25 lakh crore. In fact, the Modi government has extended the term of Pradhan Mantri Garib Kalyan Yojana, for which it needs money. To meet this expenditure, the government has come up with a supplementary demand for grants so that it can take approval from the Parliament to meet the increased expenditure under this head.

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