Government Requests Additional ₹51,462 Crore in Supplementary Grants
Click to start listening
Synopsis
On March 10, 2024, Finance Minister Nirmala Sitharaman presented the second batch of supplementary demands for grants in Parliament, seeking approval for ₹6,78,508.10 crore in additional spending for the government for the financial year 2024-25, which ends on March 31. The proposal includes significant allocations for various sectors.
Key Takeaways
- Finance Minister Nirmala Sitharaman introduced supplementary demands totaling ₹6,78,508.10 crore.
- The net cash outflow requiring new funding stands at ₹51,462.86 crore.
- Major allocations include defence pensions, communications, and agricultural schemes.
- The Unified Pension Scheme will be funded with ₹7,000 crore.
- ₹12,000 crore is earmarked for the Oil Industry Development Fund.
New Delhi, March 10 (NationPress) The Finance Minister Nirmala Sitharaman presented the second set of supplementary demands for grants in Parliament on Monday, aiming to secure approval for a total of ₹6,78,508.10 crore in extra expenditures for the government during the financial year 2024-25, which concludes on March 31 of this year.
This proposal encompasses 52 grants and three appropriations. Out of this, the net cash outflow — the actual additional spending needing new funding — stands at ₹51,462.86 crore, while the remainder will be covered by savings and increased revenues from various ministries.
The largest funding allocations include defence pensions (₹8,476 crore), communications (₹10,910.71 crore), finance (₹13,449 crore), and agricultural schemes (₹6,044.76 crore).
The net amount requested by the government for 2024-25 will include ₹7,000 crore for the Unified Pension Scheme, which was introduced during this fiscal year and will become active from April 1.
The UPS, presented as an alternative to the National Pension System, guarantees a pension amounting to 50% of the last drawn salary for government employees who retire after 25 years of service.
These additional funds will also support the ₹12,000-crore Oil Industry Development Fund. The OIDC fund, which was introduced in the Union Budget for the fiscal year 2025-26 announced in February, aims to address the subsidy shortfall for liquefied petroleum gas (LPG) provided to households and for fertilizers distributed to farmers.
The government also intends to allocate ₹2,185.63 crore for extra spending related to the Pradhan Mantri Kisan Samman Nidhi — the central scheme delivering ₹6,000 annually directly into the accounts of qualifying farmers.
In addition, the Centre is seeking to provide ₹10,910 crore for the Department of Telecommunications, which includes ₹7,000 crore for the Universal Service Obligations Fund, with the remaining funds allocated to other expenses, including additional pensions for voluntarily retiring workers from state-run telecom companies Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd.
Moreover, a budget of ₹8,476 crore will be designated for pensions for defence personnel, covering ₹6,097.5 crore for the army, ₹820.8 crore for the navy, and ₹1,554 crore for the air force.
