The Lok Sabha has approved Demands for Grants for multiple ministries for the financial year 2025-26, sanctioning an expenditure of over ₹50 lakh crore. This approval ensures that essential government functions and developmental programs continue uninterrupted, covering a wide range of sectors, including infrastructure, agriculture, power, water resources, and urban development.
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With the Appropriation Bill also passed, the government has received the necessary authorization to withdraw funds from the Consolidated Fund of India, reinforcing the nation’s commitment to economic growth and public welfare.
What Are Demands for Grants?
Demands for Grants form a crucial component of India’s annual budget. Each ministry presents its estimated expenditures for the upcoming financial year, seeking parliamentary approval to access funds. The approval of these demands ensures that government departments receive adequate financial resources to execute their respective programs and policies effectively.
Each demand includes a detailed breakdown of expenditures, categorized into revenue and capital components:
- Revenue Expenditure: Salaries, subsidies, grants, and operational expenses.
- Capital Expenditure: Infrastructure projects, asset creation, and investments in long-term development initiatives.
The approval process ensures that the financial needs of ministries align with national priorities, reinforcing fiscal discipline and accountability.
How Did the Lok Sabha Approve the Grants?
The Lok Sabha employed a Guillotine Procedure on March 21, 2025, to approve multiple grant demands collectively. This mechanism allows the House to pass outstanding budget proposals without individual discussions, ensuring timely financial allocations and preventing legislative delays.
Key Ministries and Their Approved Grants
The approved grants span various critical sectors, covering multiple ministries. Some of the key beneficiaries include:
Ministry of Railways
- Major allocations for expanding railway networks, modernizing train infrastructure, and ensuring passenger safety.
- Funding for high-speed rail projects and upgrading existing stations.
Ministry of Jal Shakti
- Water resource management and irrigation projects to combat water scarcity.
- Expansion of the Jal Jeevan Mission, ensuring clean drinking water supply to rural households.
Ministry of Agriculture & Farmers’ Welfare
- Increased support for crop insurance, minimum support price (MSP), and subsidies to farmers.
- Investments in agriculture research, sustainable farming practices, and rural development programs.
Ministry of Power
- Boosting renewable energy production through solar, wind, and hydroelectric projects.
- Strengthening national power grids and rural electrification programs.
The Appropriation Bill and Its Significance
Following the approval of the Demands for Grants, the Lok Sabha passed the Appropriation Bill (3), 2025, introduced by Finance Minister Nirmala Sitharaman. This bill legally allows the government to withdraw funds from the Consolidated Fund of India, ensuring that budget allocations can be utilized effectively.
Key Highlights of the Appropriation Bill:
- Legal Authorization: The bill provides a framework for the government to access funds legally.
- Implementation of Budgetary Decisions: Ministries can begin executing projects without financial uncertainty.
- Prevention of Financial Lapses: Ensures timely disbursement of funds, preventing delays in government projects.
Moving Forward
The Lok Sabha’s approval of over ₹50 lakh crore in grants reflects the government’s dedication to economic progress, public welfare, and infrastructure development. By ensuring the smooth operation of ministries and the execution of large-scale projects, this budget allocation will play a crucial role in India’s long-term growth.
With strategic investments across multiple sectors, these grants will help modernize India’s infrastructure, uplift rural communities, and foster industrial growth. The passing of the Appropriation Bill further guarantees that ministries receive funds without delay, ensuring efficient implementation of policies.
By – Nikita
