Parliament Approves Massive Supplementary Grants Boost

The Indian Parliament approved Rs 41,455 crore in supplementary grants, largely for fertiliser subsidies. The decision allows for a total additional expenditure of Rs 1.32 lakh crore, including Rs 18,525 crore for fertiliser subsidies and Rs 9,500 crore for oil company compensations. Fiscal consolidation remains a government focus.

On Tuesday, the Indian Parliament approved the first batch of Supplementary Demands for Grants, authorizing the government to spend an additional Rs 41,455 crore in the current fiscal year. This includes over Rs 18,000 crore allocated towards fertilizer subsidies.

The Rajya Sabha returned the proposal to the Lok Sabha through a voice vote after it had been passed on Monday. During a brief debate in the Upper House, Minister of State for Finance Pankaj Chaudhary reassured the parliament that the government is committed to fiscal consolidation.

Despite concerns about a urea shortage, Chaudhary confirmed that no such shortage exists. The supplementary grants allow for a total of Rs 1.32 lakh crore in additional expenditure, involving Rs 90,812 crore in savings from various ministries. Allocations also include Rs 18,525 crore for fertilizer subsidies and Rs 10,804 crore for oil companies.

(With inputs from agencies.)