[India], Jan 4 (ANI): The Centre on Thursday presented a demand for additional expenditure towards a previously announced bank recapitalisation plan for public sector banks, to the tune of Rs 80,000 crore.
The first tranche under the funding programme was tabled in the Lok Sabha here today by Minister of State for Finance P.P. Chaudhary, sanctioned by Finance Minister Arun Jaitley.
The supplementary grant is being sought to meet expenditure towards recapitalisation of PSBs through the issue of government securities. After taking into account additional receipts on the issue of securities to PSBs, the ministry noted that this supplementary grant will not entail cash outgo.
"Approval of the Parliament is sought to authorise gross additional expenditure of Rs 80,000 crore. Of this, the proposal involving gross additional expenditure, matched by enhanced receipts aggregates to Rs 80,000 crore," the ministry stated.
This is the third branch of supplementary demands for grants for the year 2017-18.
Earlier in October, Finance Minister Jaitley had announced an unprecedented PSB recapitalisation program of Rs. 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support.
"To improve the lending capacity of the banks, we have announced the recapitalisation programme, which is essential to increase public spending on infrastructure and that expenditure on infrastructure," Jaitley said at a press conference here.
He further said there is a need to increase public investment, for which, bold steps will be taken by the government to recapitalise banks in the country. (ANI)