Rajya Sabha clears bill to appropriate Rs 54,067 cr excess expenditure in 2022-23

NEW DELHI: The Rajya Sabha on Thursday cleared the Appropriation (No.3) Bill, 2026, which authorises the withdrawal of funds from the Consolidated Fund of India to cover excess expenditure of around Rs 54,067 crore incurred on certain services during the financial year ended on March 31, 2023.

The Bill was returned to the Lok Sabha after the members' approval through a voice vote. This completed the Parliamentary process for the Money Bill.

Replying to the debate on the Bill, Finance Minister Nirmala Sitharaman said, "This is the demand for excess grant for expenditures undertaken in the year 2023 on just two accounts. These two accounts were a part of what the Public Accounts Committee in its 39th report presented to the Lok Sabha this year in April".

Explaining further, she said one excess demand arises from a particular court order that was on the Railway Ministry for Rs 196.44 crore. The second demand pertains to a larger amount of Rs 53,871 crore for repayment of debt.

However, Sitharaman said the nature of debt receipts is against the issuance of securities and therefore has no fiscal impact.

Responding to the remarks made by a member representing Jammu and Kashmir (J&K), the Finance Minister said the Centre will ensure that the people of J&K are supported and taken care of "because we are all part of one country".

"It was interesting when I heard the member from J&K speaking about how we have to take care of J & K and support them on some of the expenditures that they are overburdened with," the Finance Minister said.

Highlighting two things of "very big significance" that the government has done for J&K, she said it was because the government strongly believes that Article 370 getting abrogated also proves that J & K is an integral part of India, inclusive of those which are occupied by Pakistan illegally.

The entire salary and pension of J & K police is being met by the Government of India on an annual basis, that means approximately Rs 13,000 crore, Sitharaman said.

She said the central government has also helped restructure the entire debt of the Union Territory of J & K.

"We paid back the entire debt of Ladakh and after having taken care of readjusting, restructured J & K's debt. Also, for the year 2024-25, and 2025-26, an additional amount of Rs 5,000 crore each year has been given, over and above the revised estimates of their Budgets, just to make sure the urgent requirements of the J & K administration (are met) and it is not left without anybody supporting them," Sitharaman informed the House.

"So each year, over and above their Revised Expenditure, we have given Rs 5,000 crore to J & K, and I wish to assure the people of J & K, every such attention will be given because we want the people of J & K to prosper along with the rest of the states," she stressed.

The Finance Minister pointed out that around Rs 1,350 crore has been given since 2021-22 to support hydel power projects of J & K. Besides, over Rs 5,166 crore was given to it under special assistance. "So we are actually addressing the issues of J & K," Sitharaman said, adding that there is still a provision of more than Rs 4,886 crore that the UT can claim additionally if it undertakes reforms.

She recalled that after the removal of Article 370 in 2019, J & K was under Central administration until such time as the elected government came to power.

"But during that time, I would like to thank the Home Minister and the Prime Minister for having helped and guided me in clearing up many overhangs which J & K suffered from," the Finance Minister said.

She said the central government took a very liberal view because it genuinely wanted to get the financial health of J & K in order before the elected government came to power.