Govt seeks approval for Rs 4.36 trillion additional spending in FY23

Fertiliser, food subsidies, payments to OMCs for LPG dominated supplementary demand

The finance ministry has sought Parliament’s approval for additional gross spending of Rs 4.36 trillion in FY23 through the first tranche of supplementary demands for grants.

While net cash outgo is pegged at Rs 3.26 trillion, the rest will be matched by savings or enhanced receipts.

The additional spending demands are dominated by fertiliser subsidy, food subsidy, payments to oil-marketing companies (OMCs) for domestic LPG operations, and funds towards the rural job guarantee scheme.

Aditi Nayar, chief economist at ICRA, said the total net cash outgo under the supplementary demand for grants was smaller than her expectations. “With savings likely