The Finance Minister, Nirmala Sitharaman, assured that the government is dedicated to maintaining the fiscal deficit within the revised estimates for FY26. She emphasized this commitment while addressing the Lok Sabha on the Supplementary Demands for Grants (Second Batch) for 2025–26. Sitharaman stated that the proposed additional spending would align with the fiscal deficit target outlined in the Union Budget 2026–27.
The fiscal deficit target for the year ending March 31, 2027, is clearly defined in the Budget for 2026–27. The government aims for a fiscal deficit of 4.3 per cent of GDP in 2026–27, which is lower than the revised estimate of 4.4 per cent of GDP in 2025–26. This reflects the government’s commitment to fiscal consolidation by targeting a lower deficit in the coming years.
Sitharaman reiterated that all commitments made in the Parliament, including those related to the second Supplementary Demands for Grants, will adhere to the fiscal deficit target set during the Budget presentation. The Supplementary Demands involve a gross expenditure of Rs 2.81 lakh crore, encompassing 61 grant requests, all of which fall within the fiscal deficit parameters outlined in the Budget.
The Finance Minister also highlighted the government’s assurance of ample fertilizers for farmers, with necessary provisions already in place. She mentioned the Economic Stabilisation Fund, designed to provide fiscal flexibility in responding to global economic challenges, with an allocation of Rs 57,381.84 crore for the Fund.
