Centre seeks to spend additional Rs 51,463 crore in FY25; FM tables demands for grants in Lok Sabha

Finance Minister Nirmala Sitharaman on Monday tabled a second batch of additional expenditure of Rs 51,462.9 crore in the current financial year. Pensions and fertiliser subsidies form the lion’s share of the proposed second tranche of spending—formally known as supplementary demands for grants. These grants are additional funds that an incumbent administration requires in order to meet its expenditures during a financial year.

Here are key things to know about this development.

• The government requires total gross additional spending to the tune of Rs 6.78 lakh crore. Out of that, a sum of Rs 6.27 lakh crore will be matched by savings and receipts.
• This translates to the net additional spending of Rs 51,462.9 crore for the year ending March 31.
• The additional expenditure includes a sum of Rs 12,000 crore for fertiliser subsidy and that of Rs 13,449 crore for government employee pensions including the Unified Pension Scheme (UPS).
• The total expenditure includes defence pensions to the tune of Rs 8,476 crore.
• It also includes a sum of Rs 1,589.6 crore for the Pradhan Mantri Ujjwala Yojana, an ambitious programme aimed at providng LPG connections to poor households. In the Budget 2024, the allocation for the scheme stood at Rs 7,948.2 crore.

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The finance minister also presented statements on estimated receipts and expenditures of Manipur for the year 2025 and the Supplementary Demands for Grants in respect of the state for the year 2024-25.

Meanwhile, on February 1, the Finance Minister created history by presenting her record 8th Union Budget in a row, with areas such as agriculture and middle-class income in the spotlight.

The Finance Minister earmarked a total expenditure of Rs 50.65 lakh crore (Budget Estimate or BE) for the financial year beginning April 1, marking a 7.4 per cent increase over a Revised Estimate (RE) for the current financial year.

In the second Budget of the Narendra Modi 3.0 government, the finance minister pegged the fiscal deficit—or the shortfall between government expenditure and revenue—at 4.4 per cent of GDP.

Last week, Prime Minister Narendra Modi said that the Union Budget 2025 showcases continuity in policies and a new expansion of his government’s ‘Viksit Bharat’ (Developed India) vision.

Addressing a post-Budget webinar on ‘Agriculture and Rural Prosperity’, organised by the Ministry of Agriculture & Farmers’ Welfare, the Prime Minister acknowledged the valuable inputs and suggestions from all stakeholders before the Budget.

He also stressed that stakeholders’ role has become even more crucial in making Budget 2025 more effective. Read more on Budget 2025