New Delhi, March 13 – The Lok Sabha on Friday approved the second batch of Supplementary Demands for Grants, which will enable the government to spend an additional ₹2.01 lakh crore in the current financial year.
The government had sought approval to spend a gross additional amount of ₹2.81 lakh crore. However, with estimated additional receipts of ₹80,000 crore during the current fiscal year, the net additional cash spending stands at ₹2.01 lakh crore.
In her reply to the debate in the House, Finance Minister Nirmala Sitharaman said that the new spending will not push the fiscal deficit beyond the government’s target. "There is no increase in expenditure beyond the BE of 2025-26 due to the second Supplementary Demand for Grants," she said.
The supplementary demands include grants for spending on setting up an Economic Stabilisation Fund of ₹1 lakh crore. The Parliament’s approval was also sought for an extra spending of ₹19,230 crore towards fertiliser subsidy and ₹23,641 crore for subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Other major expenditure heads include ₹41,822 crore for the defence ministry.
"The ₹1 lakh crore Economic Stabilisation Fund will give fiscal headroom to allow India to respond to global headwinds," Sitharaman said.
She said the fund will act as a buffer to absorb shocks arising due to unforeseen global challenges, such as the ongoing Iran war.
The Finance Minister assured that there would be no shortage of fertilisers for farmers, and adequate provision has been made in the supplementary demands for grants.
The supplementary demands were passed through a voice vote in the Lok Sabha amid disruptions. Opposition members protested over the availability of LPG in the country against the backdrop of the ongoing West Asia crisis. Soon after the passage of the demands, the House was adjourned for the day.
According to the Revised Estimates for 2025-26, the fiscal deficit remains unchanged at 4.4 per cent of GDP, which is the same level projected in the Budget Estimates.
