UPSC/UPPCS Relevance: GS III (Economy) | UP Special | Prelims
Source: TH
Why is it in News?
- The Uttar Pradesh Government presented its First Supplementary Budget for FY 2026–27 in the Legislative Assembly on 4 August 2026.
- Size of Budget: ₹59,019.54 crore.
What is a Supplementary Budget?
- A Supplementary Budget is presented when the funds approved in the Annual Budget are insufficient or when additional expenditure is required during the financial year.
- It is provided under Article 205 of the Constitution of India, which deals with Supplementary, Additional or Excess Grants.
Other Types of Grants in the Legislature (Very Important)
- Supplementary Grant- Article 205
- When the sanctioned amount is insufficient for an existing service.
2. Additional Grant- Article 205
- Required for a new service not contemplated in the original budget.
3. Excess Grant- Article 205
- When expenditure has already exceeded the amount sanctioned by the Legislature. Examined by the Public Accounts Committee (PAC) before legislative approval.
4. Vote of Credit- Article 206
- Granted for unexpected or indefinite expenditure, usually during emergencies such as war or national crises.
5. Exceptional Grant- Article 206
- Granted for a special purpose that is not part of the current financial year’s normal services.
6. Token Grant- Article 206
- A token amount (traditionally ₹1 or another nominal sum) is sought to obtain legislative approval for re-appropriation of funds when no additional overall expenditure is required.
Major Highlights
- Infrastructure Development
- Significant allocation for expressways and road connectivity.
- Funds for ongoing infrastructure and connectivity projects.
2. Agriculture
- ₹100 crore allocated to the Bhamashah Price Stabilisation Fund to help protect farmers from price fluctuations.
3. Industrial & Economic Growth
- Continued investment in industrial infrastructure and logistics.
- Support for projects aligned with the state’s one trillion-dollar economy vision.
4. Social Welfare
- Additional provisions for welfare and ongoing flagship schemes.
- Funds to meet new expenditure commitments during FY 2026–27.
Importance
- Supports implementation of priority development projects.
- Provides additional financial resources beyond the Annual Budget.
- Strengthens infrastructure, agriculture, and economic growth.
- Helps maintain fiscal flexibility during the financial year.
Constitutional Provision
- Article 205 – Supplementary, Additional and Excess Grants.
- Supplementary demands require approval of the State Legislature.
Prelims Pointers
- First Supplementary Budget (FY 2026–27): ₹59,019.54 crore
- Presented on: 4 August 2026
- Constitutional Provision: Article 205
- New Allocation: ₹100 crore for Bhamashah Price Stabilisation Fund
- Focus Areas: Infrastructure, expressways, agriculture, welfare, industrial development.
