The Lok Sabha on Monday approved the first batch of Supplementary Demands for Grants for the current financial year 2025–26, seeking a net additional expenditure of Rs 41,455.39 crore.
The proposals cover 72 grants and one appropriation. The total gross additional expenditure sought amounts to Rs 1.32 lakh crore, of which Rs 90,812 crore is proposed to be met through internal adjustments, including savings within ministries, higher receipts and recoveries. The remaining Rs 41,455 crore represents the net cash outgo requiring fresh parliamentary approval.
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A token provision of Rs 129 lakh has also been sought to facilitate the re-appropriation of savings for cases classified as ‘New Service’ or ‘New Instrument of Service’.
A substantial portion of the additional expenditure has been earmarked for subsidies. This includes Rs 18,525 crore towards additional fertiliser subsidy, necessitated by higher nutrient support requirements, and Rs 9,473 crore to compensate state-run fuel retailers for under-recoveries on liquefied petroleum gas (LPG).
Other significant 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.
Demands for Grants are formal requests for funds submitted by the government to Parliament for approval. Supplementary Demands for Grants are presented when the amount authorised through the initial Budget is found to be insufficient for the financial year. Members of Parliament scrutinise these demands to ensure that resource allocation aligns with the government’s priorities.