Finance Ministry Calls for Spending Proposals for Final Supplementary Budget Requests

The Finance Ministry has recently issued a request for expenditure proposals for the second and final batch of Supplementary Demands for Grants. This action has been taken in anticipation of the upcoming Budget session, scheduled to commence in the final week of January.

The forthcoming Budget session holds significant importance as it marks the final session of the 17th Lok Sabha before the highly anticipated general elections. During this session, the government will seek Parliament’s approval for expenditures over a four-month period, extending until July 2024, through a vote on account.

An office memorandum released by the finance ministry outlines that the second batch of Supplementary Demands for Grants for 2023-24 will be presented before Parliament in the upcoming Budget session. The memorandum specifies the cases eligible for inclusion in these demands, including instances where advances from the Contingency Fund have been granted, payments against court decree, and cases where the finance ministry has recommended moving the supplementary demand in the winter session.

The memorandum also emphasizes the importance for the grant controlling authority to identify savings within the grant while processing proposals for supplementary grants. This is to ensure that unnecessary or inflated supplementary demands are eliminated, and the need for surrender after obtaining the supplementary grant is avoided.

In accordance with the memorandum dated December 29, all ministries are required to submit their supplementary proposals by January 8. Additionally, the interim Budget for 2024-25 is expected to be presented on February 1. It is noteworthy that the Government has streamlined the Budget approval process to enhance the efficient utilization of funds.

Previously, the Budget was presented at the end of February, and a three-stage Parliament approval process was typically completed around mid-May, just before the onset of the monsoon rains. This resulted in government departments commencing spending on projects only from August-end or September, after the conclusion of the monsoon season.

The early push for approvals and the solicitation of expenditure proposals for the Supplementary Demands for Grants underlines the government’s dedication to prudent fiscal management and efficient allocation of resources. These measures ultimately aim to ensure that development projects and initiatives receive the necessary funding in a timely manner.