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Lok Sabha Clears ₹2.01 Lakh Crore Extra Outlay, Sets Up Economic Stabilisation Fund

The finance minister says the additional spending will stay within the 4.4% FY26 deficit target.

Overview

  • Parliament approved the second supplementary demands by voice vote, authorising a gross ₹2.81 lakh crore with about ₹80,000 crore in additional receipts for a net cash outgo of ₹2.01 lakh crore.
  • A ₹1 lakh crore Economic Stabilisation Fund was established as a shock buffer, with a net cash transfer of ₹57,381.84 crore this year through inter‑account moves and savings.
  • The package includes allocations such as ₹19,230 crore for fertiliser subsidy, ₹23,641 crore for PMGKAY food subsidy, and around ₹41,800 crore for defence.
  • Sitharaman reiterated there is no increase over the budgeted FY26 expenditure and affirmed the fiscal consolidation path, with FY27’s deficit target at 4.3% of GDP.
  • Proceedings were contentious as Opposition MPs protested over LPG availability linked to the West Asia conflict, while the minister assured there will be no fertiliser shortages.