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Informist, Tuesday, Dec. 16, 2025

 

--Parliament OKs 1st supplementary demands for FY26 seeking net INR 415 bln

 

NEW DELHI – Parliament Tuesday passed the first batch of Supplementary Demands for Grants, allowing the government to spend a net additional of INR 414.55 billion in 2025–26 (Apr-Mar), with the Rajya Sabha returning the money bill. The Lok Sabha had passed the bill on Monday. 

 

The government tabled the first batch of Supplementary Demands for Grants in Parliament on Dec. 1, seeking Parliament's permission to spend gross additional of INR 1.32 trillion and net extra of INR 414.55 billion in FY26. The government's savings under any particular head can be rerouted to spending requirements in another department, lowering the net requirement for additional funds. Additional net spending will have a fiscal impact. 

 

Of the INR 415 billion sought by the government, INR 185.28 billion is allocated to fertiliser subsidy schemes, including phosphatic and potassic fertilisers. The petroleum ministry will get an additional INR 94.73 billion, including compensation to state-owned oil marketing companies for under-recoveries in domestic liquefied petroleum gas.

 

The government's first batch of Supplementary Demands for Grants for the current year is slightly lower than the net INR 441.43 billion in the first batch of FY25. This is likely due to the additional cushion from the record INR 2.69 trillion surplus transferred by the Reserve Bank of India to the government. 

 

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, citing improved budget management.

 

The government 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 rose 32% on year to INR 6.18 trillion.

 

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

 

Reported by Krity Ambey

Edited by Saji George Titus

 

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