Government seeks Parliament’s nod for additional ₹44,143 cr spending in FY25

The government on Thursday (December 12, 2024) sought Parliament's nod for additional net cash spending of ₹44,143 crore in the current fiscal.

The first batch of Supplementary Demands for Grants for 2024-25 was tabled in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary to seek approval of Parliament to authorise gross additional expenditure of ₹87,762.56 crore.

Of this, the proposals involving net cash outgo aggregate to ₹44,142.87 crore and gross additional expenditure, matched by savings of the Ministries/ Departments or enhanced receipts/recoveries, aggregates to ₹43,618.43 crore.

This includes approval for spending ₹6,593.73 crore towards the fertiliser subsidy scheme.

Aditi Nayar, chief economist at rating firm ICRA said, “The net cash outgo under the 1st Supplementary Demand for Grants is relatively modest, and could end up being offset by savings in departments other than those included in this supplementary, for instance capital expenditure.”

“We don’t see this additional expenditure as posing a risk to the achievement of the fiscal deficit target for this year, given the expectations of capex undershooting the budgeted amount of ₹11.11 lakh crore by at least ₹1 lakh crore,” she reckoned.