Government’s Request for Extra Money
The government is asking permission from Parliament to spend an additional Rs 78,673 crore in the current fiscal year (financial year 2023-24).
Details of the Proposal
The Finance Minister, Nirmala Sitharaman, presented the second batch of supplementary demands for grants in Parliament.
Rs 10,798 crore is set aside for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a program aimed at providing rural employment.
Additional spending includes Rs 9,231 crore for food subsidy and Rs 3,000 crore for fertilizer subsidy.
Overall Financial Picture
The proposed supplementary demands suggest a total additional spending of over Rs 2 lakh crore.
However, this is balanced by savings of over Rs 1.21 lakh crore, resulting in a net cash outgo of Rs 78,672.92 crore.
Future Financial Plans
The Interim Budget for the next fiscal year (2024-25) anticipates the government’s total expenditure to be Rs 44.90 lakh crore, a 7.1% increase from the previous year.
Allocation of Funds
Rs 9,162 crore is allocated for payments to defense services.
Rs 3,890 crore is set aside for defense pension.
Rs 5,000 crore is earmarked for the Department of Economic Affairs to transfer to the Senior Citizen Welfare Fund.
Rs 84.12 crore is allocated for the Enforcement Directorate’s expenses due to increased operational activity and new office setups.