New Delhi, March 13 Finance Minister Nirmala Sitharaman on Friday said the Rs 1 lakh crore Economic Stabilization Fund will provide fiscal space for India to respond to global challenges.
Responding to the debate on the second batch of supplementary demands for grants in the Lok Sabha, she said the fund would act as a buffer to absorb shocks arising from unforeseen global challenges, such as the current one in West Asia.
"The Rs 1 lakh crore Economic Stabilization Fund will provide fiscal space for India to respond to global challenges," she said.
Through the second batch of supplementary demands, the government sought approval from the Lok Sabha for spending a gross amount of Rs 2.81 lakh crore in the current fiscal year. With additional receipts of Rs 80,000 crore budgeted for the current fiscal year, the net additional cash spending will be Rs 2.01 lakh crore.
Sitharaman said the fiscal deficit for the current fiscal year (2025-26) will be within the Revised Estimates (RE).
In RE 2025-26, the fiscal deficit has been estimated at 4.4 per cent of GDP, which is in line with the Budget Estimates of 2025-26.
"There is no increase in expenditure beyond the BE of 2025-26 due to the second supplementary," Sitharaman said, amidst continuous slogans raised by opposition members over concerns about the LPG shortage.
In the Revised Estimates for the current fiscal year, the government had reduced the total expenditure to Rs 49.65 lakh crore, from Rs 50.65 lakh crore in BE.
According to data from the Controller General of Accounts (CGA), the government had spent Rs 36.90 lakh crore until January.
The supplementary demands for grants include funds for setting up a Rs 1 lakh crore Economic Stabilization Fund. Also, approval from Parliament has been sought for an additional spending of Rs 19,230 crore on fertilizer subsidies and Rs 23,641 crore under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Other major expenditure heads include Rs 41,822 crore for the defence ministry.
Sitharaman said there would be no shortage of fertilizers for farmers, and adequate provisions have been made in the supplementary demands for grants.