Data dive: What the Centre's demand for additional funds tells us about the economy
Live MintEvery year, close to the budget presentation, the government tables supplementary demands for grants in Parliament to seek additional funding for different ministries and departments. This fiscal year, the first tranche of the demands, tabled last week, has been one of the lowest in recent years, with the net cash outgo the lowest since 2021-22. Notably, the Mahatma Gandhi National Rural Employment GuaranScheme, a key policy tool for the government to manage unemployment and the slowdown in the rural economy, did not make it to the first supplementary demand for grants, possibly due to anticipation of low demand for rural jobs amid robust agricultural activity. A net cash outgo of ₹44,000 crore in the first tranche and a bigger demand in the second tranche are unlikely to disrupt the fiscal maths, thanks to lower capital expenditure spending.