The government has decided to write off a Rs 1,573 crore (Rs 15.73 billion) loan provided to IFCI Ltd this year by seeking Parliament's approval to convert the 20-year loan carrying 0.1 per cent interest into a grant. This will, however, not entail any cash outgo.

In its first batch of supplementary demands for grants for the current fiscal, Finance Minister Jaswant Singh has estimated a net cash outgo of Rs 5,580 crore (Rs 55.80 billion). The rural development ministry's Sampoorna Gramin Rozgar Yojana accounted for almost 66 per cent, or Rs 3,650.24 crore (Rs 36.50 billion), of the total cash outgo.

The finance ministry has asked for Rs 555.36 crore (Rs 5.55 billion) as technical supplementary for India's first-ever subscription to the International Monetary Fund [Rs 551.43 crore (Rs 5.51 billion)] and the International Development Association.

The cash outgo component of the total supplementary budget of Rs 8,518.93 crore (Rs 85.19 billion) could increase the total expenditure of the Centre for the current fiscal from the projected Rs 438,795.07 crore (Rs 4,387.95 billion) made in the Budget 2003.

Among those heads entailing a cash outgo, the next largest one is for providing loans to states to make payment to sugarcane growers for Rs 607.19 crore (Rs 6.07 billion). The sum had been promised by the finance ministry for three states initially but has been extended to all states now.

In addition, the Centre will provide Rs 500 crore (Rs 5 billion) to Delhi Metro Rail Corporation and Rs 200 crore (Rs 2 billion) for setting up price stabilisation funds for tea, coffee, rubber and tobacco.

It will provide Rs 196.45 crore (Rs 1.96 billion) to the department of chemicals and fertilisers for meeting VRS and VSS expenditures for Indian Drugs and Pharmaceuticals, Maharashtra Antibiotics and Pharmaceuticals, Smith Stainstreet Pharmaceuticals and Bengal Immunity Limited.

The supplementary budget has also made a provision of Rs 18 crore (Rs 180 million) to set up the three important bodies, including the Competition Commission of India, Serious Frauds Office and National Company Law Tribunal, under the department of company afffairs.