NEW DELHI: With the fertiliser subsidy, other West Asia related spends and initiatives, such as the electronics manufacturing push through schemes for semiconductors and mobiles adding to the Centre’s expenditure, finance minister Nirmala Sitharaman may seek Parliamentary approval for additional spending, without losing sight of the overall fiscal situation.The discussion around the need for Parliamentary sanction is in contrast to her ministry’s earlier stance as it wanted to wait for more data to come before assessing the situation. With the turmoil in West Asia still to settle, it is tough to have a clear picture, but officials indicated that the spending so far is higher and some of the expenditure, which will be matched through savings elsewhere, will need legislative clearance.So far, GST and direct tax revenues have been on track and Sitharaman is pushing the department of investment and public asset management (DIPAM) hard to provide some cushion through additional realisation. Her meetings with the DIPAM brass have helped the Centre rake in Rs 20,272 crore — a little over one-fourth of the target with more than two-thirds of the fiscal year left.A huge comfort will come if DIPAM manages to move ahead and finalise the IDBI Bank transaction, which has been in the pipeline for nearly five years. With just two players in the fray, a lot will depend on how Emirates NDB, which has already acquired a majority stake in RBL Bank.Prem Vatsa’s Fairfax, the other suitor, has a 40% stake in Catholic Syrian Bank and RBI will have a role to play in deciding its fate.For the moment, it is the additional expenditure, which has prompted a rethink on the first supplementary demand for grants as the higher fertiliser subsidy bill needs to be settled. While the fertiliser department had sought doubling of the allocation, prices have softened over the last few weeks, compared with the peak, proving some relief. The oil subsidy, which too has soared, will also need to be settled, although not immediately.The Rs 1.9 lakh crore push for electronics manufacturing will require some additional allocation this year and with other ministries also drawing up replacement schemes for production linked incentive, some of which may have to wait, given the pressure on expenditure.For a govt that has stuck to the fiscal deficit targets, despite facing one pressure or another almost every year, Sitharaman will seek to maintain her record and achieve the goal of 4.3% of GDP.
