Govt seeks Rs 41,500 crore fresh outgo in first FY26 Supplementary Grants

The Union Government on Monday tabled the first batch of Supplementary Demands for Grants for FY26, seeking Parliament’s approval for a net cash outgo of about Rs 41,500 crore.

The set of proposals spans 72 grants and one appropriation, reflecting both fresh expenditure requirements and internal adjustments across ministries. The total gross additional expenditure amounts to Rs 1.32 lakh crore.

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Of this, Rs 90,812 crore is expected to be met through savings within ministries or higher receipts and recoveries, while the remaining Rs 41,455 crore will require fresh parliamentary approval.

Further, the Centre has also sought a token provision of Rs 129 lakh to enable re-appropriation of savings in cases involving a New Service or New Instrument of Service. A significant portion of the additional spending is directed toward subsidies.

The government has proposed Rs 18,525 crore in extra fertiliser subsidy, driven by higher nutrient support requirements, and Rs 9,473 crore to compensate state-run fuel retailers for LPG under-recoveries.

Other allocations include Rs 2,500 crore for Union Territories, Rs 2,298 crore for the Ministry of Home Affairs, Rs 1,303 crore for Higher Education, and Rs 1,192 crore to meet additional expenditure under Direct Taxes.

Grants and demands in the parliament refer to the process of ministries and departments requesting funds for the upcoming financial year.

The Demands for Grants are the formal requests for funds that the government submits to parliament for approval, and parliamentary members scrutinize these demands to ensure the allocation of resources aligns with government priorities.