Government Seeks Parliament's Approval for ₹41,000 Crore Additional Spending
The Centre has sought Parliament's approval for an additional ₹41,439.29 crore in spending, primarily for subsidies and rural employment.
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Centre seeks ₹41,439.29 crore additional spending
Funds primarily for food, fertilizer, petroleum subsidies, and MGNREGS
This is the first batch of Supplementary Demands for Grants
Key Numbers
Visual Insights
Government's Additional Spending Request: Key Figures
This dashboard highlights the crucial financial figures and areas for which the Union government is seeking additional parliamentary approval, reflecting its ongoing fiscal management.
- Total Additional Spending Sought
- ₹41,439.29 Crore
- Key Areas of Additional Spending
- Subsidies & MGNREGS
- Parliamentary Procedure
- Supplementary Demands
This represents the first batch of Supplementary Demands for Grants for the current fiscal year, indicating increased or unforeseen expenditures beyond the initial budget.
A significant portion is earmarked for critical areas: Food, Fertilizer, and Petroleum subsidies, and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
This is a standard parliamentary procedure where the government seeks legislative approval for funds beyond the annual budget, governed by Article 115 of the Constitution.
Exam Angles
Constitutional provisions related to financial matters (Articles 112-117, 266, 267).
Budgetary process: Annual Financial Statement, Appropriation Bill, Finance Bill, types of grants (Supplementary, Excess, Vote on Account, Token).
Fiscal policy and management: Fiscal deficit, revenue deficit, FRBM Act, impact of subsidies.
Welfare schemes: MGNREGS, its objectives, funding, and impact.
Parliamentary control over public finance.
View Detailed Summary
Summary
The Union government has approached Parliament for approval of additional spending amounting to ₹41,439.29 crore through the first batch of Supplementary Demands for Grants for the current fiscal year. This request indicates that the government needs more funds than initially allocated in the budget for various expenditures. A significant portion of this additional spending is earmarked for critical areas like food, fertilizer, and petroleum subsidies, as well as for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
This process is a standard parliamentary procedure where the government seeks legislative approval for unforeseen or increased expenditures beyond the annual budget. It reflects the government's ongoing fiscal management and its response to evolving economic needs and social welfare commitments.
Background
India's budgetary process is governed by constitutional provisions (Articles 112-117). The annual budget (Annual Financial Statement) lays out estimated receipts and expenditures. However, unforeseen circumstances, policy changes, or underestimation can lead to the need for additional funds.
This is where Supplementary Demands for Grants come into play, as per Article 115. Historically, governments have often resorted to supplementary demands, sometimes indicating either conservative budgeting or reactive fiscal management.
Latest Developments
Practice Questions (MCQs)
1. Consider the following statements regarding Supplementary Demands for Grants in India: 1. They are presented to Parliament when the amount authorized by the Appropriation Act for a particular service for the current financial year is found to be insufficient. 2. The constitutional provision for Supplementary Demands for Grants is enshrined under Article 115 of the Indian Constitution. 3. Funds approved under Supplementary Demands for Grants are drawn from the Public Account of India. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 1 is correct. Supplementary Demands for Grants are sought when the initial allocation in the budget (authorized by the Appropriation Act) proves insufficient. Statement 2 is correct. Article 115 deals with Supplementary, Additional, or Excess Grants. Statement 3 is incorrect. Funds for government expenditure, including those approved via Supplementary Demands, are drawn from the Consolidated Fund of India, not the Public Account. The Public Account holds funds like provident funds, small savings, etc., which do not belong to the government.
2. With reference to the budgetary process and public finance in India, consider the following statements: 1. All expenditure charged upon the Consolidated Fund of India is subject to the vote of Parliament. 2. The Contingency Fund of India is placed at the disposal of the President, and Parliament's approval is required only after the expenditure has been incurred. 3. An 'Excess Grant' is sought when money has been spent on a service during a financial year in excess of the amount granted for that service in the annual budget. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is incorrect. Expenditure charged upon the Consolidated Fund of India (e.g., salaries of President, Supreme Court judges, CAG) is *not* subject to the vote of Parliament, though it can be discussed. Only 'voted' expenditure is subject to parliamentary vote. Statement 2 is correct. The Contingency Fund (under Article 267) is an imprest fund placed at the President's disposal to meet unforeseen expenditures. Parliament's post-facto approval is sought for such withdrawals, and the amount is then recouped from the Consolidated Fund. Statement 3 is correct. An Excess Grant is sought when expenditure exceeds the amount originally sanctioned for a service in the budget. This requires parliamentary approval after the financial year has ended.
3. In the context of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which of the following statements is/are correct? 1. It guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. 2. The funding for MGNREGS is entirely borne by the Central Government. 3. The Gram Panchayat is responsible for issuing job cards, allocating work, and monitoring the implementation of the scheme at the village level. Select the correct answer using the code given below:
- A.1 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct. MGNREGS guarantees 100 days of wage employment to every rural household. Statement 2 is incorrect. While the central government bears the major share (100% of the wage cost for unskilled manual workers and 75% of the material cost), the state governments bear the cost of unemployment allowance, 25% of the material cost, and administrative costs. Statement 3 is correct. Gram Panchayats are the primary implementing agencies, responsible for key functions like job card issuance, work allocation, and monitoring.