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

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 to recoup an advance from the Contingency Fund, 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.

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.