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Informist, Monday, Dec. 1, 2025

 

--Govt seeks net INR 414.55 bln in FY26 1st batch of supplementary demands 

--Govt seeks gross INR 1.32 tln in FY26 1st batch of supplementary demands 

 

NEW DELHI – The government has sought Parliament's approval to spend a net additional INR 414.55 billion in the first batch of Supplementary Demands for Grants for the current financial year ending March, according to documents tabled in the Lok Sabha Monday. The gross additional spending sought by the government is INR 1.32 trillion.

 

The government is seeking slightly lower funds for additional spending in the first batch of Supplementary Demands for Grants for FY26 compared to a year ago. In FY25, it had sought a net INR 441.43 billion in the first supplementary demands.

 

Of the additional INR 415 billion sought by the government for FY26, INR 185.28 billion is for fertiliser subsidy schemes, including for phosphatic and potassic fertilisers. The petroleum ministry has also sought INR 94.73 billion for additional expenditure, including for compensating state-owned oil marketing companies for under-recoveries in domestic liquefied petroleum gas.

 

The government typically tables the first Supplementary Demands for Grants in the Monsoon Session of Parliament. Over the last three years, however, it has tabled the first supplementary demand for the year in the Winter Session, saying this was a reflection of improved budget management.

 

The first batch of supplementary demands for FY26 is possibly lower because of the additional cushion coming from the record surplus of INR 2.69 trillion transferred by the Reserve Bank of India to the government. 

 

The government has spent INR 26.26 trillion between April and October, up 4.5% on year. This accounts for 51.8% of the total budgeted expenditure of INR 50.65 trillion for FY26. The government's revenue expenditure was flat on year at INR 20.01 trillion in Apr-Oct while capital spending was up 32% on year at INR 6.18 trillion.

 

The government's savings under any particular head can be rerouted to spending requirements in another department, lowering the net requirement for additional funds. Any additional spending over and above the budgeted expenditure poses the risk of fiscal slippage. 

 

The government is expected to meet its fiscal deficit target of 4.4% of GDP for FY26 despite slower than projected nominal GDP growth so far and lower tax revenues. Economists expect the government to meet its fiscal deficit target this year by saving up on revenue expenditure and capital expenditure.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta and Ashish Shirke

 

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