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Centre Seeks Parliament Approval for Rs 2.81 Lakh Crore Supplementary Spend, With Rs 1 Lakh Crore Economic Stabilization Fund

The package reflects a bid to cushion subsidy pressures from fresh West Asia supply shocks through savings-backed reallocations.

Overview

  • Finance Minister Nirmala Sitharaman tabled the second supplementary demands for FY26 seeking a net cash outgo of about Rs 2.01 lakh crore.
  • Of the Rs 2.81 lakh crore gross request, Rs 80,145.71 crore is expected to be covered by savings, enhanced receipts and recoveries.
  • The plan sets aside Rs 1 lakh crore via inter-account transfer for an Economic Stabilization Fund and Rs 1,703.44 crore for the Gold Reserve Fund.
  • Subsidy additions include Rs 19,230 crore for fertilisers and Rs 23,641 crore for PMGKAY food support, with Rs 30,116.80 crore proposed for transfers to states.
  • ICRA noted urea prices climbed to about $597 per tonne by March 4 following West Asia disruptions and warned extended stress could pressure the subsidy bill.