India's Budget Boost: Extra Billions for Defence and Subsidies

The Indian government seeks an additional 414.55 billion rupees in spending for the fiscal year, focusing on defence procurements and subsidies for fertilisers and cooking gas. This request, part of a larger 1.32 trillion rupees proposal, will be reviewed by parliamentary panels before receiving likely approval.

On Monday, India's government requested parliamentary approval for an additional net spending of 414.55 billion rupees ($4.62 billion) for the fiscal year. The proposal includes crucial allocations for defence purchases and subsidies intended for fertilisers and cooking gas.

Finance Minister Nirmala Sitharaman unveiled the supplementary demands, highlighting a 41.03 billion rupees allocation for defence to fulfill procurement requirements and increased capital expenditures. The plan also comprises a request for 125 billion rupees to compensate state-run oil companies for cooking gas sales losses, alongside a 110 billion rupees fertiliser subsidy augmentation.

These additional expenditures, including covering higher costs of imported urea worth 75.25 billion rupees, supplement the government's planned budget of 50.65 trillion rupees for the fiscal year ending March 31. The allocations await parliamentary committee review and, given the ruling party's majority, are expected to pass swiftly.

(With inputs from agencies.)