Mains Answer Writing - 21 Dec, 2025
GS2
Indian Polity
15 marks
“Supplementary Demands for Grants are an important fiscal instrument for managing unforeseen expenditure.” In this context, examine the rationale behind additional allocations for fertilizer subsidy and compensation to oil marketing companies, and assess their implications for fiscal discipline and economic stability.
Tips for your answer
- Explain the mechanism first — briefly define Supplementary Demands for Grants and their role in meeting unforeseen fiscal requirements during a financial year.
- Link allocations to economic objectives — connect fertilizer subsidies to food security and farmer welfare, and OMC compensation to energy price stability and inflation control.
- Critically assess fiscal impact — comment on implications for fiscal discipline, subsidy rationalisation, and the need for transparency and long-term reforms.
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