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Informist, Monday, Dec. 15, 2025

 

NEW DELHI – The Lok Sabha Monday passed the first batch of Supplementary Demands for Grants for 2025-26 (Apr-Mar), giving permission to the government for net additional spending of INR 414.55 billion during the year. On a gross basis, the government had sought permission for additional spending of INR 1.32 trillion.

 

The government tabled the first batch of Supplementary Demands for Grants for FY26 in Parliament on Dec. 1, seeking slightly lower funds for additional spending compared with a year ago. In FY25, it had sought net INR 441.43 billion in the first batch.

 

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 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 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 lower possibly 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 Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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