Supplementary Demand for Grants in 2025 Budget

The Indian Finance Ministry called for supplementary demand proposals from various ministries. This request comes during the ongoing Budget session for the financial year 2024-25. The aim is to assess additional funding needs objectively. Ministries must submit their proposals by February 12, 2025.

About Supplementary Demand for Grants

Supplementary demands for grants are requests for additional funds beyond the initial budget allocations. These funds are essential for addressing unforeseen expenses or urgent needs. The process ensures that government ministries can continue their operations without financial hindrance.

Eligibility Criteria for Supplementary Proposals

Proposals can be made for various reasons. These include advances from the Contingency Fund. Payments resulting from court decrees are also eligible. Additionally, the Finance Ministry may advise ministries to propose supplementary demands during the Budget session.

Revised Estimates and Assessment

Proposals must align with the Revised Estimate ceiling for 2024-25. Ministries are required to conduct a thorough assessment of their additional funding needs. This ensures that the proposed amounts are justified and necessary.

Grant Controlling Authority’s Role

The grant controlling authority plays important role in processing these proposals. They must identify savings within the existing grants. This step helps eliminate unnecessary or inflated demands. It also prevents the surrender of funds after obtaining supplementary grants.

Importance of Objective Assessment

An objective assessment is vital for maintaining fiscal discipline. It ensures that the government allocates funds effectively. This process helps in prioritising essential services and projects that require immediate funding.

Impact on Financial Management

Supplementary demands impact the overall financial management of the government. They allow for flexibility in budgeting. This flexibility is crucial in addressing unexpected challenges that arise during the fiscal year.

Timelines for Submission

Timely submission of proposals is critical. Ministries must adhere to the February 12 deadline. Delays can lead to funding shortages for essential services.

Questions for UPSC:

1. Examine the significance of supplementary demands for grants in the context of fiscal management.
2. Discuss the role of the Contingency Fund in managing unforeseen government expenditures.
3. Critically discuss the impact of objective assessments on the allocation of supplementary grants.
4. With suitable examples, discuss the importance of identifying savings within existing grants before proposing supplementary demands.

Answer Hints:

1. Examine the significance of supplementary demands for grants in the context of fiscal management.

1. Supplementary demands allow governments to address unforeseen expenses effectively.
2. They help maintain continuity in government operations without financial disruptions.
3. These demands ensure that essential services receive timely funding.
4. They promote fiscal discipline by requiring ministries to justify additional funding needs.
5. Supplementary grants can enhance flexibility in budget management, adapting to changing circumstances.

2. Discuss the role of the Contingency Fund in managing unforeseen government expenditures.

1. The Contingency Fund provides immediate financial resources for emergencies.
2. It allows the government to respond swiftly to unexpected situations like natural disasters.
3. Advances from this fund can be a basis for supplementary demands when expenses exceed initial budgets.
4. The fund is crucial for maintaining operational stability in government ministries.
5. It minimizes delays in funding essential services during crises.

3. Critically discuss the impact of objective assessments on the allocation of supplementary grants.

1. Objective assessments ensure that funding requests are based on actual needs, preventing waste.
2. They enhance transparency and accountability in financial management.
3. Such assessments prioritize urgent and necessary expenditures over less critical needs.
4. They help in maintaining fiscal discipline by justifying each supplementary demand.
5. Objective evaluations contribute to better long-term financial planning and resource allocation.

4. With suitable examples, discuss the importance of identifying savings within existing grants before proposing supplementary demands.

1. Identifying savings prevents unnecessary or inflated supplementary requests, promoting efficiency.
2. For example, if a ministry has unspent funds from a project, it can utilize those before requesting more.
3. This practice encourages responsible budgeting and resource management within ministries.
4. It reduces the risk of surrendering funds after obtaining supplementary grants.
5. By maximizing existing resources, the government can allocate funds more effectively across various needs.