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Informist, Monday, Oct. 21, 2024

NEW DELHI – With the government currently holding the pre-Budget meetings with different ministries and departments, the finance ministry has asked all ministries to submit their supplementary proposal for grants for the ongoing fiscal latest by Nov. 15. The pre-Budget meetings for 2025-26 (Apr-Mar) Budget began on Oct. 10 and will end on Nov. 11. 

"The ministries or departments whose pre-budget meetings with Ministry of Finance will be concluded by Oct. 29 are, therefore, required to submit their supplementary proposals by Nov. 6 and the remaining ministries or departments, within one week of completion of their pre-budget meeting or by Nov. 15, whichever is earlier," the finance ministry notification said. 

The Budget has projected the government's total expenditure in FY25 at 48.21 trln rupees, up 8.5% from last year. The supplementary demands are likely to include any required additional expenditures on items such as food and fertiliser subsidies. This year, however, the government's expenditure so far has been tepid.

In the first five months of FY25, capital expenditure is tracking 19.5% lower on year at INR 3 trillion while revenue expenditure is 4.1% higher on year; but the government's expenditure on major subsidies in Apr-Aug fell marginally by 1.2% on year to INR 1.786 trillion. 

The finance ministry has invited proposals only for cases in which advances from the Contingency Fund have been granted, where payments against court decrees cannot be postponed, or if there is an immediate need for additional funds that can be met by re-appropriation of savings in the grants, the notification said.

Ministries and departments can also submit proposals for cases where the finance ministry has specifically advised to propose a supplementary demand and where excess expenditure has been allowed, it said. 

Owing to a better cash management system and changes to spending norms by the ministries, in FY24, departments had sought only a net additional expenditure of INR 584 billion, much below what was sought previously. 

A supplementary demand should be sought for the minimum necessary amount after a thorough review of savings within the grant, the notification added. The government will present supplementary demands in Parliament during the Winter Session likely in Nov-Dec.  End

Reported by Priyasmita Dutta 

Edited by Akul Nishant Akhoury

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