Indian Government Seeks Parliament Approval for Additional Spending

December 8, 2023

The government has proposed a net additional spending of Rs 58,378 crore in the current fiscal ending March 2024, with a focus on key areas such as MGNREGA and fertilizer subsidies. The Supplementary Demands for Grants tabled in Parliament outline a gross additional spending of over Rs 1.29 lakh crore, with Rs 70,968 crore expected to be offset by savings and receipts. The net additional spending includes allocations for fertilizer subsidy, the Department of Food and Public Distribution, the Ministry of Petroleum and Natural Gas, and MGNREGA under the Ministry of Rural Development.

Key Allocations

1. Fertilizer Subsidy: The government is proposing an additional expenditure of Rs 13,351 crore towards fertilizer subsidy, aiming to support the agriculture sector.

2. Department of Food and Public Distribution: Approximately Rs 7,000 crore is allocated for spending by the Department of Food and Public Distribution, addressing essential needs and public distribution.

3. Ministry of Petroleum and Natural Gas: Parliament approval is sought for an additional spending of Rs 9,200 crore by the Ministry of Petroleum and Natural Gas, emphasizing the significance of the energy sector.

4. Ministry of Rural Development (MGNREGA): An additional Rs 14,524 crore is proposed for the Ministry of Rural Development, specifically for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), addressing rural development and employment.

5. Ministry of External Affairs: The Ministry of External Affairs is slated for total supplementary spending of Rs 20,000 crore, to be adjusted against a reduction in expenditure of over Rs 9,000 crore.

Implications

The proposed additional spending signals the government’s commitment to addressing key sectors and initiatives crucial for economic development, welfare, and employment generation. As Parliament deliberates on these Supplementary Demands for Grants, it reflects the ongoing efforts to navigate economic challenges and prioritize strategic allocations in the current fiscal year.

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