News Excerpt:
Recently, FM has sought proposals for the second and final batch of supplementary demand for grants.
About the news:
- Ahead of the Union Budget in February 2024, the Union Finance Ministry has invited expenditure proposals from various Ministries and departments.
- They are required to submit their supplementary proposals by January 8, 2024.
- According to the Department of Economic Affairs, the second and final batch of Supplementary Demands for Grants for 2023-2024 is proposed to be placed before the Parliament in the ensuing Budget Session.
- The interim budget for 2024-25 is likely to be presented on February 1.
- Being a Vote-on-account, ahead of the general elections, the upcoming budget is likely to see expenditure proposals mainly for only about four months.
Current Financial Year (FY) - Fiscal background:
- Till the end of November this fiscal, the Centre has incurred an expenditure of ₹ 26.52 lakh crore, which accounts for 58.9 percent of BE (Budget Estimates) 2023-24.
- Out of the total expenditure, ₹ 20.66 lakh crore was on the revenue account and ₹ 5.85 lakh crore was on the capital account.
- Additionally, on December 6, 2023, the Centre placed in Parliament its first batch of supplementary demand for grants for 2023-24.
- This involved an additional gross expenditure of ₹ 1.29 lakh crore.
- Of this, net cash outgo stood at ₹ 58,378.21 crore and gross additional expenditure matched by savings of the Ministries/departments aggregated to ₹ 70,968 crore.
- Parliament passed the first batch of supplementary demand for grants in December 2023 and the President gave her assent to the connected Appropriation Bill on December 24, 2023.
Prelims PYQ
Q. When the annual Union Budget is not passed by the Lok Sabha (UPSC 2011)
(a) the Budget is modified and presented again
(b) the Budget is referred to the Rajya Sabha for suggestions
(c) the Union Finance Minister is asked to region
(d) the Prime Minister submits the resignation of Council of Ministers
