New Delhi: Finance Minister Nirmala Sitharaman announced that the government has created a ₹1 lakh crore Economic Stabilisation Fund to help the country respond effectively to global economic uncertainties and unexpected external shocks.
Speaking during discussions on the second batch of supplementary demands for grants in the Lok Sabha, she said the fund would provide additional fiscal flexibility to manage global challenges such as the ongoing tensions in West Asia. The fund is intended to act as a buffer that allows the government to absorb sudden economic disruptions and maintain financial stability.
The government has sought parliamentary approval to spend an additional ₹2.81 lakh crore during the current financial year. After accounting for additional receipts estimated at ₹80,000 crore, the net additional cash outgo is expected to be around ₹2.01 lakh crore.
Sitharaman stated that the fiscal deficit for the financial year 2025 to 2026 will remain within the revised estimates and will stay aligned with the budget projections. The fiscal deficit is expected to remain at 4.4 percent of the country’s gross domestic product, the same level estimated in the Budget for the year.
She also clarified that the second supplementary demands would not lead to expenditure exceeding the original budget estimates for the year. In the revised estimates for the current financial year, the government reduced the total expenditure target to ₹49.65 lakh crore from the earlier budget estimate of ₹50.65 lakh crore. Official data shows that ₹36.90 lakh crore had already been spent by January.
The supplementary proposals include ₹19,230 crore towards fertiliser subsidies and ₹23,641 crore for subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana. Additional allocations include ₹41,822 crore for the defence sector.
Addressing concerns about agricultural supplies, the finance minister assured that there will be no shortage of fertilisers for farmers, stating that adequate financial provisions have been made to ensure uninterrupted availability.
