FY24 supplementary grants: Big cash flow unlikely this winter session

The government has exhausted only 39 per cent of its fiscal deficit target in the first half (April-September) of FY24

The first supplementary demands for grants for 2023-24 (FY24), to be presented in the upcoming winter session of Parliament, is unlikely to involve any major cash outflow, as the government aims to meet the 5.9 per cent of gross domestic product (GDP) fiscal deficit target amid a slowdown in nominal GDP growth.

“We are seeing quite a bit of rejigging of provisions being made. We will draw the supplementary demands based on the discussions on Revised Estimates with the departments, which have been completed. I don’t foresee a major cash outflow as of today,” said a finance ministry official.

The