The demand for MGNREGA scheme has been declining, which could signal reduction in demand for jobs in rural areas, according to Finance Minister Nirmala Sitharaman.
The Finance Minister fielded questions concerning the fiscal deficit, inflation, subsidy bill and capex progress, among other topics, in the Parliament on Wednesday.
The first Supplementary Demand for Grants was passed in the Lok Sabha following the Finance Minister's reply on key issues raised by parliamentarians.
In terms of additional grants, the highest demand has been for fertilizer subsidy, Sitharaman said.
Sitharaman highlighted that inflation is being monitored closely, and fiscal deficit is expected to be in line with budgeted target. Efforts are also on to revive BSNL with a special package, she said.
Here are five key takeaways:
Reduction In Demand For MGNREGA
The additional demand for the Mahatma Gandhi National Rural Employment Guarantee Act scheme amounted to Rs 16,400 crore in the first SDG.
The government pegged the budgetary estimate for the scheme at Rs 73,000 crore.
"The demand for MGNREGA has been coming down in the recent past... MGNREGA is a demand-driven programme. There is very obviously a declining demand for jobs in rural areas," Sitharaman said.
Citing data for the period between 2015 till date, she shared the following figures:
Number of of man days created: 2,341.
Total funds released: Rs 5,76,303 crore.
Works completed: 602 lakh.
Fertilizer Subsidy Bill Swells Demand List
The Finance Minister said that the demand for additional grants are critical for India.
The first SDG included 75 demands and six appropriations with a cash outgo of Rs 3.26 lakh crore. The gross additional expenditure amounted to Rs 4.35 lakh crore.
The revenue component amounts to Rs 2.95 lakh crore with Rs 31,052 crore in the capital section, the FM said.
The highest demand, amounting to Rs 1.09 lakh crore, was made on account of imported and indigenous fertiliser subsidy for P&K and urea fertilizers.
"India, which is largely an importer of fertilisers, will have to now also start working on self-sufficiency as regards to fertiliser manufacturing in this country. A lot of efforts are going on, on that score," Sitharaman said in the Parliament.
Other top subsidy items include demand for food and public distribution at Rs 80,348 crore, which is expected to go towards Pradhan Mantri Garib Kalyan Anna Yojana and decentralized procurement of foodgrains under the National Food Security Act.
Fuel-related demand was pegged at Rs 24,943 crore, which will be used to compensate OMCs for their losses and go towards the Pradhan Mantri Ujjwala Yojana.
Fiscal Deficit Will Stick To Budgeted Target
According to Sitharman, fiscal deficit was in line with "the government's commitment". It was estimated to reduce from 6.9 % of GDP in last year's revised estimates to 6.4% in the current year's Budget estimates.
"We will comply with budgetary target on fiscal deficit," the Finance Minister said.
The demand for grants is being presented considering revenue buoyancy, room to operate and the need to respond to developing situations, she said.
Inflation Kept On Close Watch
CPI inflation was reported to have come within RBI's tolerance band on Tuesday. On Wednesday, the WPI inflation was reported to be at a 21-month low of 5.85% in November compared to 8.39% in October.
Food inflation is at 2.17% vs 6.48% month-on-month, the FM said.
"PM and his group of ministers are constantly watching and taking periodic measures..."
The prices of pulses, vegetables and edible oils are also monitored by an informal group of ministers that meets every week, she said.
"The buffer stock of pulses has been maintained for price stabilisation in 2020-21, 2021-22 and 2022-23. Calibrated release of pulses from buffer stock will moderate price of pulses in the market," Sitharaman said.
Big Revival For BSNL
The Department of Telecommunications' demand amounts to Rs 13,668.84 crore in the first SDG.
Speaking on the revival plan for BSNL, the FM said, "BSNL gets its due recognition and infusion of money denied over time."
In July 2022, the government approved a revival package for BSNL at Rs 1.64 lakh crore to enable it to deploy "AatmaNirbhar 4G" technology.
For 4G technology stack, (as part of) the projected capex in the next four years, the government will spend Rs 22,471 crore for BSNL alone, so that their capital infrastructure spending will be good and this will be a big boost for development and deployment of AatmaNirbhar 4G technology.Union Finance Minister Nirmala Sitharaman
Over 54% of the capex outlay (at Rs 7.5 lakh crore for FY23) has been achieved, with 74% of the Rs 1 lakh crore capex loan utilised by states, she said. Of that, Rs 76,268.31 crore had received approval from the central government.
According to Sitharaman, there may be further extra-budgetary spend for Railways.
"An additional Rs 10,000 crore towards railway infrastructure capex is under consideration...This is over and above the Rs 12,000 crore demanded in first supplementary demand for grants," she said.
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