Govt limits additional spending to Rs 58,378 crore, eyes fiscal prudence

The government has set a fiscal deficit target of 5.9 per cent of GDP for FY24

In a sign of fiscal prudence ahead of the 2024 general elections, the Union finance ministry on Wednesday sought Parliament’s approval for additional gross spending of Rs 1.29 trillion, involving net cash outgo of Rs 58,378 crore in FY24 through the first tranche of Supplementary Demands for Grants. In comparison, in the first Supplementary Demands for Grants in FY23, the government had sought approval for gross additional expenditure of nearly Rs 4.36 trillion, with a net cash outgo of Rs 3.25 trillion.

But the government will present a second tranche of Supplementary Demands for Grants during the Budget session of