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Second Supplementary Demands for Grants: ₹6.79 Trillion

11 March 20251 min read
ECONOMYSecondSupplementaryDemands for Grants:₹6.79 Trillion11 March 2025safalsetu.com

Why in the news

The Government asked Parliament to approve the second supplementary demands for grants, mostly matched by savings elsewhere.

Key facts

  • Gross extra spending: ₹6.79 trillion; net cash outgo: ₹51,463 crore.
  • Offsetting savings: up to ₹6.27 trillion, plus higher receipts and recoveries.
  • A token ₹6,700,000 provision lets savings fund new services or instruments.
  • The first supplementary grant had a net outgo of ₹44,123 crore earlier in FY25.
ItemAmount
Fertiliser subsidy₹12,000 crore
Unified Pension Scheme₹7,000 crore (pension limit ₹13,449 crore)
Telecom and defence pensionsNotable sums

Fiscal impact

  • Nominal GDP estimate raised 2.1%; FY25 deficit at 4.8% of GDP.
  • Deficit may cross the ₹15.7 trillion revised estimate, yet analysts see about 4.7% of GDP.

Exam angle

  • Supplementary demands need Parliament’s nod; UPS is a pension scheme.

Test yourself

1. In the second supplementary demands for grants, what net cash outgo did the Government seek?

Net cash outgo sought was ₹51,463 crore against gross spending of ₹6.79 trillion.

2. How much was earmarked for the Unified Pension Scheme in the additional spending, within an overall pension limit of ₹13,449 crore?

₹7,000 crore was allotted for UPS.

3. What revised fiscal deficit estimate, in rupees, was mentioned as likely to be exceeded by the additional spending?

Extra outgo may push the deficit past the ₹15.7 trillion revised estimate.

This topic is part of Daily Current Affairs 11 March 2025 (17 topics).

All topics of the dayDay quizMarch 2025

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