The Supplementary Demands for Grants (SDG) are likely to see additional allocation for fertliser, food and fuel subsidy along with Rural Employment Guarantee Scheme. However, not much fresh cash outflow is expected. SDG will be presented during winter session of Parliament scheduled to begin on December 4.

“Some fund provided for subsidy and rural employment guarantee scheme through contingency fund with a condition that they will be regularlised through Parliamentary process. We expect not only these to happen but also some additional allocation through SDG,” a senior Government official said. Since the budget discussion with various central Ministries and Departments are over, Finance Ministry has a clear idea about the kind of additional fund requirement that will be required how it can be sourced.

“We do not see much of fresh cash outflow in SDG which means no threat to budget estimate of fiscal deficit which is 5.9 per cent of GDP,” the official added. SDG refers to the statement of supplementary demands laid before Parliament, showing the estimated amount of further expenditure necessary for a financial year, over and above the expenditure authorised in the Annual Financial Statement for that year. The demand for supplementary grants may be token, technical or substantive/cash.

Token refers to a symbolic amount (₹1 lakh or so) to be allocated for any scheme, technical means savings of a Ministry/ Department to be used for a different purpose, or for a scheme where more funds are required. Substantive/ cash implies fresh allocation beyond what is provided in the Budget and is to be met through fresh withdrawal from the Consolidated Fund of India.

The budget size for fiscal year 2023-24 is over ₹45 lakh crore, of which over ₹21.19 lakh crore (over 47 per cent) has been spent in the first half (April-September) period. Though there has been a significant increase in capital expenditure, part of the revenue expenditure on Nutrient-Based Fertiliser Subsidy and Urea Subsidy, has already touched 96 per cent and 52 per cent in the first six months. Cabinet has already approved additional expenditure of over ₹22000 crore which is likely to be provisioned through SDG.

The Budget has pegged the petroleum subsidy at ₹2,257 crore, mainly for the Ujjwala LPG scheme. Since the government has finalised an additional 75 lakh connections under the scheme, the subsidy required could overshoot what has been budgeted. Also, additional subsidy of ₹100 is to be provided for Ujjawala customers. At the same time, there could be a demand for assistance from oil marketing companies, who have to foot the ₹200 price-cut on each domestic LPG cylinder. All these could lead to demand for additional allocation. Another allocation to be required for free food grains scheme.

There is also expectation of more funds for Mahatma Gandhi National Rural Employment Guarantee Scheme. The budget allocated ₹60,000 crore. Then additional ₹10,000 crore provided. “As of now around ₹2,000 crore remains. Additional demand is for ₹40,000 crore,” another government official said.

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