Government Seeks Parliament Nod for ₹1.32 Lakh Crore Additional Expenditure

The government has sought Parliament’s approval for a gross additional expenditure of ₹1.32 lakh crore for the current financial year. This includes proposals with a net cash outgo of ₹41,455.39 crore and savings of ₹90,812 crore from various ministries and departments.

Finance Minister Nirmala Sitharaman presented the first batch of Supplementary Demands for Grants for FY 2025-26 in the Lok Sabha on December 1. The move reflects the government’s effort to balance fiscal priorities while addressing critical sectoral requirements.

Breakdown of Additional Spending

A significant portion of the proposed spending, over ₹18,000 crore, is earmarked for fertiliser subsidies to support farmers amid rising input costs. This allocation aims to ensure affordable fertilisers and maintain agricultural productivity during a period of inflationary pressure.

Other allocations include defence, welfare schemes, and administrative expenses, which are essential for sustaining economic growth and social welfare. The government has emphasised that these measures are necessary to meet urgent demands without compromising fiscal discipline.

Legislative Measures Introduced

Alongside the spending proposals, the Finance Minister introduced two key bills to generate additional revenue. The Central Excise (Amendment) Bill, 2025 seeks to levy excise duty on tobacco products, while the Health and National Security Cess Bill proposes a cess on pan masala.

These measures are expected to strengthen public health initiatives and contribute to national security funding. By introducing these bills, the government aims to diversify revenue streams and reduce reliance on borrowing.

Parliamentary Session Agenda

The ongoing winter session will include 15 sittings and the introduction of 14 bills, covering a wide range of legislative reforms. Key proposals include the Atomic Energy Bill, the Higher Education Commission of India Bill, and amendments to corporate, insurance, excise, and arbitration laws.

A financial bill introducing health and national security cess is also expected during this session. These legislative changes are designed to modernise regulatory frameworks and support long-term economic stability.

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Conclusion

The government’s request for ₹1.32 lakh crore in additional expenditure, including ₹41,455 crore net cash outgo, underscores its focus on agriculture and welfare spending. With multiple bills lined up, the winter session is expected to shape key fiscal and regulatory policies for FY 2025-26.

These measures aim to strike a balance between supporting growth and maintaining fiscal prudence. Investors and policymakers will watch closely as these proposals move through Parliament in the coming weeks.

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