Govt seeks extra spend of over Rs 51,000 crore in FY25; Rs 7,000 crore for Unified Pension Scheme

Govt seeks extra spend of over Rs 51,000 crore in FY25; Rs 7,000 crore for Unified Pension Scheme

The central government sought the Parliament's approval to spend an additional Rs 51,463 crore on a net basis for the current financial year ending March 31, according to a statement.

Finance Minister Nirmala Sitharaman tabled the second batch of supplementary demands in Parliament on March 10. These demands will fund additional expenses beyond the initial budgeted outlays.

In gross terms, the Centre has sought Rs 6.79 lakh crore in additional spend for FY25 through the second batch of supplementary demands.

The net cash outgo includes demand for spending Rs 7,000 crore towards Unified Pension Scheme (UPS), Rs 12,000 crore towards Oil Industry Development Fund, and Rs 1,351 crore for waiver of government's dues to Hindustan Organic Chemicals Ltd (HOCL).

The UPS, brought in as an alternative to the National Pension System, will be rolled out from April 1, 2025.

This scheme offers a pension of 50-percent of the last drawn pay for those government employees that are retiring after 25 years in service.

The central government has also sought approval to spend Rs 5,320 crore to upgrade telecom networks in underserved areas, and pay dues to employees of Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd, the statement said.

For defence-related pensions, the government has earmarked Rs 8,476 crore, including an expenditure of Rs 6,097.5 for the army, Rs 820.8 crore for the navy and Rs 1,554 crore for the air force.