Fiscal Math: New schemes won’t upset fiscal math of Centre

NEW DELHI: New schemes such as Vishwakarma and urban housing as well as an extension of the free foodgrains under PDS for five years and adding more beneficiaries under Ujjwala are unlikely to upset the government’s fiscal math as the Centre prepares to include some of the proposed spends in the first supplementary demand for grants that will be tabled in Parliament next month.
While some of the schemes will be funded through savings under other heads, the spend for others will be limited to three or four months, meaning the burden will not be very high. For instance, in case of free foodgrains, which was announced by PM Narendra Modi during the campaign for assembly elections, the government will only budget for higher minimum support price for the rabi crops and the higher bill for four months of the fiscal year. Besides, officials said that tax collections are on course and non-tax revenue, including dividends from PSUs and RBI, are expected to provide cushion for any shortfall, an official said.

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