Govt seeks Rs 51k cr cash outgo in second supplementary demand for grants

The central government seeks Parliament's approval for Rs 6.78 trillion in additional spending for FY25

The Union Finance Ministry on Monday sought Parliament’s approval for Rs 6,78,508.10 crore in additional spending for the 2024-25 financial year (FY25) through the second batch of supplementary demands for grants. This includes 52 grants and three appropriations. Of this, the net cash outgo—the actual additional spending requiring fresh funding—amounts to Rs 51,462.86 crore, while the rest is being offset by savings and enhanced receipts across various ministries.

 

Additionally, a token provision of Rs 67 lakh has been proposed to enable the government to reallocate savings for new services or initiatives.

 

The largest allocations include defence pensions (Rs 8,476 crore), communications (Rs 10,910.71 crore), finance (Rs 13,449 crore), and agricultural schemes (Rs 6,044.76 crore).

 

Meanwhile, Rs 2,185.63 crore has been earmarked for PM-KISAN, along with Rs 1,604.50 crore for other grants-in-aid under the same scheme.

 

For agricultural research, Rs 130 crore has been allocated to the Indian Council of Agricultural Research (ICAR) to meet additional pension liabilities.

 

The Department of Atomic Energy has also been allocated Rs 301.49 crore to procure fuel from Russia’s TVEL as part of efforts to ensure a steady supply for nuclear energy generation. 

What are Supplementary Grants?

Supplementary Grants are additional funds required to cover the government's expenditure when the initially approved grants fall short. If the grants authorised by Parliament are insufficient, an estimate for Supplementary or Additional Grants is presented to Parliament. These grants are discussed and passed by Parliament before the end of the financial year.

 

When the actual expenditure exceeds the approved grants, the Ministry of Finance and the Ministry of Railways submit a Demand for Excess Grant. The Comptroller and Auditor General of India brings such excess expenditures to the attention of Parliament.

 

The Public Accounts Committee reviews these excesses and provides recommendations to Parliament. The Demand for Excess Grants is submitted after the actual expenditure is incurred and is presented to Parliament after the financial year in which the expenses occurred.

 

Govt sought net cash outgo of Rs 78k crore in FY24

Last year, the government sought Rs 2 trillion in additional spending for FY24, with a net cash outgo of Rs 78,673 crore. This was largely offset by Rs 1.21 trillion in savings across ministries. The previous year, the Centre pegged the net cash outgo at Rs 1.48 trillion.

 

The Interim Budget for 2024-25 set total government expenditure at Rs 44.90 trillion, marking a 7.1 per cent increase compared to 2022-23.

 

Key allocations in the second tranche of supplementary grants include Rs 10,798 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Rs 9,231 crore for food subsidies, and Rs 3,000 crore for fertiliser subsidies.