The Government will seek Parliament's approval for Rs 37,000-crore additional spending on infrastructure development in the second batch of supplementary demands for grant.

Earlier this month, Finance Minister Nirmala Sitharaman had announced additional budget of Rs 25,000 crore as capital expenditure (capex) on roads, defence, water supply, urban development and domestically produced capital equipment.

Besides, the central government approved issuance of a special interest-free 50-year loan to states of Rs 12,000 crore for infrastructure development.

Approval for this additional spending will be sought through second supplementary demands for grants, sources said.

This was part of the third stimulus announced by the government earlier this month to boost demand during the festival season. The additional spending of Rs 37,000 crore is over and above Rs 4.13 lakh crore capex plan approved by the government in Budget 2020-21. 

For various schemes of Aatmanirbhar Bharat Abhiyan package, the government sought approval of additional spending through first batch of supplementary demands for grants last month.

The second supplementary demands for grants usually presented during the winter session of Parliament.

The government has assured various infrastructure related ministries and departments that it will provide more money if needed and it is ready to provide the additional funds even at the revised estimates level, sources said.

Highlighting the importance of infra development, the finance minister recently said money spent on infrastructure and asset creation has a multiplier effect on the economy. It not only improves current economy but also future GDP, she had said while announcing Rs 37,000 crore extra spending for infra development.