The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi,  approved ex post facto the implementation of the Special Banking Arrangement (SBA) for ₹ 14,500 crore for outstanding claims on account of fertilizer subsidy in the year 2013-14.

Government is making fertilizers namely Urea and 22 grades of Phosphatic and Potassic (P&K) fertilizer available to farmers at subsidized prices through fertilizer manufacturers / importers. Subsidy to fertilizer companies is paid from funds allocated under regular budget estimates for each year. In order to meet carried over subsidy liabilities and help fertilizer companies overcome their liquidity problems, due to delay in payment of subsidy, an SBA had been made during 2013-14 with a consortium of nationalized banks to avail loans with the approval of the Ministry of Finance. The loan together with Government interest amounting to ₹ 169.33 crore has been repaid from Budget Estimates for 2014-15, within the sanctioned budget under the Vote on Account.

Ex post facto approval of Special Banking Arrangement enabled temporary bank loans to cover outstanding fertilizer subsidy repaid from budget. Ex post facto approval was granted for a Special Banking Arrangement under which a consortium of nationalized banks provided temporary loans to meet carried-over fertilizer subsidy liabilities for 2013-14; the loan and Government interest were repaid from the Budget Estimates for 2014-15 and accommodated within the sanctioned Vote on Account, thereby regularising retrospective use of banking credit to bridge subsidy payment delays.