Finance Minister Nirmala Sitharaman announced a ₹1 lakh crore Economic Stabilisation Fund on March 13, 2026, to provide fiscal flexibility amid global headwinds like the Iran war’s energy disruptions and supply chain shocks.
Fund Details and Purpose
Part of the second supplementary demands totaling ₹2.81 lakh crore gross spending (net ₹2.01 lakh crore after receipts), the fund acts as a buffer without raising the FY26 fiscal deficit beyond 4.4% of GDP. It supports responses to unforeseen events, including West Asia volatility impacting oil prices and inflation.
Lok Sabha Context
Sitharaman defended the proposals amid opposition uproar over LPG shortages, noting no excess beyond Budget Estimates and allocations like ₹95,000 crore for VB-G RAM G from April 2026. Supplementary grants enable agile aid without rigid budgeting.
Broader Economic Strategy
The initiative bolsters resilience for India’s growth trajectory, covering fertiliser subsidies (₹19,230 cr), PMGKAY (₹23,641 cr), and defence (₹41,822 cr), countering external risks effectively.
