Watch: Explained: What are Supplementary Demands for Grants?
GS3Economy · S&T · Environment · Security· Fiscal policy, budget & taxation (GST)· Prelims·
Why in news
The Indian government utilizes Supplementary Demands for Grants in December to request additional funds when actual spending exceeds the initial estimates presented in the February budget.
Background
The annual budget is presented in February to plan spending for the financial year starting in April. Supplementary Demands for Grants are submitted in December based on more accurate spending data gathered 8-9 months into the fiscal year.
Facts for Prelims
- FactSupplementary Demands for Grants are typically submitted in December.
- FactThe annual budget is presented in February for the financial year starting in April.
- FactSupplementary Demands are based on spending estimations made during the annual budget presentation.
For Mains
Q. Discuss the significance of Supplementary Demands for Grants in ensuring fiscal discipline and accommodating unforeseen expenditures in the Indian Union Budget.
Dimensions to cover in your answer
- Fiscal flexibility: Balancing the need for unplanned expenditure with the principle of parliamentary oversight
- Estimation accuracy: Addressing the gap between initial budgetary projections and actual mid-year expenditure requirements
Keywords: Fiscal Policy · Supplementary Demands · Budgetary Estimates · Expenditure Management · Fiscal Discipline
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.