Didn't underestimate spending provisions in Budget: FM Sitharaman

 Lok Sabha gives assent to additional net spending of Rs 2.99 trn

Union Finance Minister Nirmala Sitharaman on Monday said the additional expenditure consent sought by the Centre from Parliament through Supplementary Demand for Grants this year was around 9.6 per cent of the Budget 2021-22 size of Rs 34.8 trillion. This compares to 8.6 per cent during the time of the Manmohan Singh government in 2011-12, she said, adding that the Centre did not under-provision in the Budget.

Replying to the debate on the second Supplementary Demand for Grants and the Appropriation Bill in the Lok Sabha, Sitharaman said the Centre was seeking legislative nod to spend Rs 2.99 trillion extra because of issues such as the Air India sale and the rise in global fertiliser prices, which led to a sharp increase in fertiliser subsidy burden this year.

“Many members have asked if the demand this time is so high because we underestimated in Budget 2022 Estimates (BE)? The big-ticket expenditure items include Air India. Also, at a time when we are very sensitive to farmers and their concerns, we have to ensure that they don’t suffer because of the rise in global commodity prices. And therefore, an increase in the subsidy for fertiliser has been provided, which itself is accounting for Rs 58,430 crore,” Sitharaman said…

Govt planning to launch National Mission on Edible Oil in the near future

Experts have suggested activating the oilseed mission and creating an oilseed development fund while looking at possibility of allowing GM oilseeds into the country

As reliance on imported edible oil is growing, India needs to relook at ways to address it to improve domestic availability. Two thirds of the domestic demand is met by imported oil and this is considered very high. Experts have suggested creating an oilseed development fund while looking at the possibility of permitting GM oilseeds to raise domestic availability. So far, government policies have focused on restricting imports and some tariff measures.

“The government is seriously concerned about stagnant oilseeds production and the rising import of edible oils to the tune of 15 million tonnes per annum, costing the exchequer over Rs 75,000 crore. To increase production of oilseeds from the current 30 million tonnes to over 47 million tonnes by 2024-25, the government plans to launch the national mission on edible oil programme in the next three months,” said Atul Chaturvedi, president of the Solvent Extractors Association (SEA) of India.

Sources in the industry, however, said that the Budget for 2020-21 may allocate funds for this mission. According to data from SEA, India’s average oilseeds production in the last few years has been 28-30 million tonnes and production of edible oil is 7.5 to 8 million tonnes. Production and refining in India was also lower because of high imports. In the current year, crude palm oil prices have increased almost 50 per cent in last six months in the international market. This has helped in the curtailment of imports…