 "Nirmala Sitharaman, Nirmala")
The Centre on Thursday (December 12) requested parliamentary approval for an additional gross expenditure of Rs 86,730 crore during the current financial year, according to the finance ministry.
The net additional spending, as stated by the government, amounts to Rs 44,183 crore for the financial year ending March 31. The remaining amount will be managed through reallocation of resources, according to a Reuters report.
The request comes in the wake of a significant economic slowdown, with India’s GDP growth for the second quarter (July-September) plummeting to 5.4 per cent — the lowest level since the third quarter of FY23, as per data released by the National Statistics Office (NSO) on November 29.
This marked a steep decline from the 8.1 per cent growth recorded during the same period last year and 6.7 per cent in the first quarter of FY25 (April-June). While economists had anticipated a deceleration to 6.5 per cent, the economy fell short of expectations, reaching a near two-year low.
Several factors have contributed to the subdued growth. Inflationary pressures weighed heavily, with retail food inflation surging to 10.87 per cent in October, curtailing consumer spending. Overall inflation exceeded the Reserve Bank of India’s (RBI) comfort zone of 2–6 per cent, rising to 6.2 per cent.
Also Read
 "Atul Subhash")
 "Elon musk, musk, Elon")
 "Arvind Kejriwal, Arvind, Kejriwal")
 "HDFC Bank")
 "Karachi airport, Pakistan Blast")
Corporate performance also lagged, as leading firms reported their weakest quarterly earnings in over four years, dampening investment sentiment. High borrowing costs and stagnant real wage growth further impacted private consumption, which accounts for 60 per cent of the GDP. However, rural demand offered a glimmer of hope, showing signs of improvement.
Domestic rating agency ICRA had earlier projected GDP growth at 6.5 per cent, attributing the slowdown to factors such as prolonged monsoon activity and weak corporate earnings. Persistent inflation and tepid corporate performance are seen as key obstacles to India’s economic recovery, with economists warning of potential further setbacks to private consumption — a critical driver of growth.
[With Reuters input]
 "Nirmala Sitharaman, Nirmala")
 "RBI, Reserve Bank of India")
 "Trade, Port, Container")
 "Chief Economic Advisor (CEA) V Anantha Nageswaran at the Business Standard BFSI Summit | Photo: kamlesh pednekar")
 "India is losing access to its cheapest crude oil grade because of high margins charged by traders offering partially sanctioned Venezuelan oil, reducing the value of the commodity for Indian refiners, industry sources and officials told Business Stan")
