The Union Finance Ministry has sought Parliament’s approval for ₹6,78,508.10 crore in additional spending for the financial year 2024-25 (FY25) through the second batch of supplementary demands for grants. This request covers 52 grants and three appropriations and aims to fund various ministries and schemes.
However, the net cash outgo—the actual amount requiring fresh funding—is ₹51,462.86 crore, with the remaining expenditure offset by savings and increased receipts across different government departments.
Key Allocations in the Supplementary Grants
The supplementary budget includes significant allocations across multiple sectors:
1. Major Allocations Across Ministries
- Defence Pensions – ₹8,476 crore
- Communications – ₹10,910.71 crore
- Finance – ₹13,449 crore
- Agricultural Schemes – ₹6,044.76 crore
2. Funds Allocated for Key Government Schemes
- PM-KISAN – ₹2,185.63 crore
- Grants-in-aid under PM-KISAN – ₹1,604.50 crore
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) – ₹10,798 crore
- Food Subsidies – ₹9,231 crore
- Fertilizer Subsidies – ₹3,000 crore
3. Other Notable Allocations
- Agricultural Research (ICAR) – ₹130 crore for additional pension liabilities
- Department of Atomic Energy – ₹301.49 crore to procure fuel from Russia’s TVEL for nuclear power generation
Additionally, the government has proposed a token provision of ₹67 lakh to allow the reallocation of savings for new services or initiatives.
What Are Supplementary Grants?
Supplementary grants are additional funds requested by the government when the initially approved budget is insufficient to cover expenditures. These grants ensure that the government can meet unexpected or additional financial commitments within a financial year.
Types of Supplementary Grants:
- Supplementary Grants: Requested when the allocated budget is insufficient.
- Additional Grants: Sought when new spending requirements arise.
- Excess Grants: Required when actual expenditure exceeds the approved budget. The Comptroller and Auditor General (CAG) reports these excesses to Parliament, which are then reviewed by the Public Accounts Committee (PAC) before approval.
Comparison with Previous Years
- FY24: The government sought ₹2 trillion in additional spending, with a net cash outgo of ₹78,673 crore. This was balanced by ₹1.21 trillion in savings across ministries.
- FY23: The net cash outgo was ₹1.48 trillion.
For FY25, the Interim Budget had already set total government expenditure at ₹44.90 trillion, reflecting a 7.1% increase from FY23.
The government’s latest supplementary demand for grants reflects its commitment to key welfare programs, defense, and infrastructure while managing expenditures efficiently. By balancing additional spending with savings and enhanced revenues, the government ensures that critical schemes like PM-KISAN, MGNREGS, and subsidies continue without disrupting financial stability. As Parliament reviews the request, the focus remains on fiscal responsibility and economic growth.
