New Delhi: Union Finance Minister Nirmala Sitharaman on Thursday announced an economic stability fund of Rs 1 lakh crore to help India respond to unexpected global disruptions, including the ongoing conflicts in West Asia.
Speaking in the Lok Sabha during the discussion on supplementary demands for grants, Sitharaman said the package is aimed at ensuring the economy is not hit by a surge in international crude oil prices and at containing price rise in essential commodities.
She said the net cash outgo would be Rs 57,381.84 crore, with the remaining amount to be met from government savings. The minister added that the additional spending would not affect the fiscal deficit for 2025-26, which is projected to remain at 4.4% of GDP as budgeted.
The finance minister rejected opposition claims that bringing supplementary demands reflects poor budget planning, arguing that budgets are forecasts and governments must be prepared for unforeseen events such as wars or supply-chain disruptions.
Amid loud protests by opposition MPs, supplementary demands involving additional expenditure of Rs 2.01 lakh crore were passed in the House through a voice vote.
