The Indian government has requested Parliament’s approval to spend an additional ₹51,463 crore for the current financial year, which ends on March 31, 2025. This additional expenditure is part of the second batch of supplementary demands presented by Finance Minister Nirmala Sitharaman in Parliament on March 10.
Why Is the Government Seeking Extra Funds?
Every year, the government prepares a budget to allocate funds for various sectors. However, sometimes additional expenses arise that were not accounted for in the initial budget. To cover these costs, the government seeks approval from Parliament for supplementary demands.
In this case, the government has sought a gross additional spending of ₹6.79 lakh crore for FY25, with a net cash outgo of ₹51,463 crore.
Key Allocations in the Additional Spending
- Unified Pension Scheme: ₹7,000 crore has been allocated to support the Unified Pension Scheme, which aims to strengthen pension benefits for citizens.
- Oil Industry Development Fund: The government plans to spend ₹12,000 crore on this fund, which supports the oil and gas sector. Additionally, the Oil Ministry will receive an extra ₹1,000 crore.
- Hindustan Organic Chemicals Ltd (HOCL): ₹1,351 crore has been earmarked for waiving the government’s dues to the state-run chemical company HOCL.
- Telecom Sector Support: ₹5,320 crore has been proposed for upgrading telecom networks in underserved areas. This amount will also be used to clear dues of employees from Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).
These additional funds will help in addressing critical financial needs in different sectors and ensure smooth functioning of government programs. Now, it is up to Parliament to approve these supplementary demands.
