Parliament Approves Rs 41,455 Crore Supplementary Budget for Fiscal Consolidation

Parliament approved Rs 41,455 crore additional spending for the current fiscal, including a significant fertiliser subsidy. With fiscal consolidation in focus, the government plans a gross expenditure of Rs 1.32 lakh crore, offset by savings from various ministries. Concerns on urea shortage were addressed by increased monthly production.

In a significant fiscal move, Parliament on Tuesday approved the first batch of Supplementary Demands for Grants, allowing the government to spend an additional Rs 41,455 crore this fiscal year. Notably, over Rs 18,000 crore has been earmarked for fertiliser subsidies, highlighting the government's focus on agricultural support.

The Rajya Sabha gave its assent to this supplementary demand for grants with a voice vote, following the Lok Sabha's approval on Monday. The approval accounts for a gross additional expenditure of Rs 1.32 lakh crore, comprising a net cash outgo of Rs 41,455.39 crore and savings of Rs 90,812.17 crore across various ministries.

Minister of State for Finance, Pankaj Chaudhary, emphasized the government's commitment to fiscal consolidation, aiming to bring down the fiscal deficit from 9.2% in 2020-21 to a target of 4.4% by 2025-26. Addressing concerns about urea shortages, Chaudhary assured that production is increasing by 1 lakh metric tonne monthly, reflecting the government's proactive approach to cooperative federalism and non-discrimination against any state.

(With inputs from agencies.)