The Hindu : National : Lok Sabha approves excess grant

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Wednesday, Dec 13, 2006
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Lok Sabha approves excess grant

Special Correspondent

NEW DELHI: The Lok Sabha on Tuesday approved an excess grant of Rs. 21,823.92 crore to meet, among other things, expenses relating to fertiliser subsidy, interest relief to farmers and transfers to States.

The Demands for Excess Grants (General) for the years 2004-05 and 2006-07 include a cash outgo of over Rs. 11,700 crore for Central assistance to States for their plans, power sector reforms in Jammu & Kashmir and the National Social Assistance programme, especially for increase in pensions.

An additional amount of Rs. 436 crore is to be provided to Jammu and Kashmir for development of the power sector which is over and above the Rs. 500 crore already handed over to the State earlier.

Besides, an additional Rs. 3,700 crore is required primarily for importing 50 lakh tonnes of urea to meet the increased demand. While a total of Rs. 4,400 crore is required for meeting the expenditure on fertiliser subsidy, an amount of Rs. 700 crore is to be financed through recoveries.

Interest relief

Another Rs. 1,359 crore is required for providing interest relief to farmers in 31 districts identified as suicide-prone in States like Andhra Pradesh, Kerala, Karnataka and Maharashtra.

Replying to the discussion in the House, Finance Minister P. Chidambaram expressed concern over rising prices while noting that inflation was the "only fly in the ointment" in an otherwise robust economy.

"Inflation is largely a monetary phenomenon ... we are taking steps on monetary and fiscal fronts," he said. Earlier, the Opposition urged the Government to augment support to farmers by increasing bank credit to the farm sector.

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