India Proposes Rs 1 Lakh Crore Economic Stabilisation Fund, Approves Rs 2.01 Lakh Crore Supplementary Spending

Finance Minister Nirmala Sitharaman announced the creation of a Rs 1 lakh crore Economic Stabilisation Fund to provide fiscal flexibility amid global challenges like the West Asia crisis. The government sought Lok Sabha approval for a gross additional expenditure of Rs 2.81 lakh crore for FY26, with net spending of Rs 2.01 lakh crore after accounting for additional receipts. Sitharaman assured that the fiscal deficit will remain within the Revised Estimates at 4.4% of GDP, with no increase beyond the Budget Estimates. Key allocations include defence, fertiliser subsidies, and rural employment schemes. Opposition members raised concerns over LPG shortages during the parliamentary debate.