House approval sought for extra spending of Rs 78,673 cr in FY24

The government on Monday sought parliamentary approval for an extra net expenditure of ₹78,673 crore in the second and final batch of supplementary demands for grants for 2023-24, on top of the ₹58,378 crore additional spending approved in the first batch in December last year.

Despite the additional expenditure, the government expects to rein in its fiscal deficit for this financial year at 5.8% of gross domestic product, bettering the 5.9% budgeted goal, as revenue mop-up is estimated to breach the initial projections, according to the interim budget for 2024-25.

The latest set of demands involves gross additional spending of more than ₹2 lakh crore in this fiscal. However, nearly ₹1.22 lakh crore of it will be met through savings or enhanced receipts of various ministries and departments, showed the papers tabled in Parliament.


The government had budgeted total expenditure of ₹45 lakh crore for 2023-24, while its tax and non-tax revenue was pegged at ₹26.3 lakh crore. However, the interim budget revised the expenditure estimate to ₹44.9 lakh crore, in the wake of an expected drop in capex from the budgeted level, and tax and non-tax revenue to ₹27 lakh crore.

The latest supplementary demands comprise a total of 71 grants and one appropriation.

The net outgo under the two batches of supplementary demands for grants in 2023-24 is way below the level a year before, when the government had sought clearance for a net spending of ₹4.74 lakh crore. However, this was because the Ukraine war broke out unexpectedly, leading to elevated global commodity prices that inflated the government's subsidy bill in 2022-23.

J&K interim budget for 2024-25

Finance minister Nirmala Sitharaman on Monday presented an interim budget of almost ₹1.19 lakh crore for 2024-25 for the Union territory of Jammu & Kashmir, up 9.7% from the revised estimate (RE) for 2023-24.

Revenue spending in the next fiscal is pegged at ₹80,162 crore, up 5.3% from 2023-24 (RE), while capital spending will see a 20.4% jump to ₹38,566 crore. The interim budget estimated a fiscal deficit of ₹20,760 crore in 2024-25, down from ₹23, 542 crore in 2023-24 (RE). It also projected a 7.5% expansion in the gross state domestic product next fiscal.

"The government is maintaining law and order to ensure security while simultaneously implementing initiatives for economic and social development. The government has adopted a policy of zero tolerance against terrorism," Sitharaman said.