Finance Minister's Address on Economic Measures
Finance Minister Nirmala Sitharaman addressed the Lok Sabha during the second part of the Budget session on March 13, 2026, focusing on economic stabilization amidst global challenges.
Economic Stabilisation Fund
- The government has allocated ₹57,381 crore to an Economic Stabilisation Fund.
- This fund aims to provide fiscal space to tackle global headwinds like energy shocks and supply chain disruptions due to the West Asia conflict.
- It is designed to help India respond to any unforeseen economic crises.
Budgetary Allocations and Fiscal Deficit
- The Lok Sabha approved the government's demand for a net cash outgo of ₹2.01 lakh crore, inclusive of the Economic Stabilisation Fund allocation.
- Despite the additional allocations, the government aims to meet its fiscal deficit target of 4.4% of GDP for 2025-26.
- Additional receipts of ₹80,000 crore are anticipated, leading to a net extra spending of ₹2.01 lakh crore.
Post COVID-19 Economic Recovery
Policy initiatives post-COVID-19 have supported economic recovery and strengthened India's macroeconomic framework, allowing it to withstand various economic shocks without deviating from its fiscal consolidation roadmap.
Minister Sitharaman reassured that the financial commitments, including supplementary grants, would not affect the fiscal deficit targets set in the budget.
