The Lok Sabha has given the green light to the second batch of Supplementary Demands for Grants, allowing the government to utilize an extra Rs 2.01 lakh crore in the ongoing fiscal year. This approval follows the government’s request to spend a total additional amount of Rs 2.81 lakh crore, with anticipated extra receipts of Rs 80,000 crore, resulting in a net cash spending increase of Rs 2.01 lakh crore.
Finance Minister Nirmala Sitharaman, in response to the parliamentary discussion, emphasized that this new expenditure will not exceed the government’s fiscal deficit target. She clarified that the second Supplementary Demand for Grants will not escalate spending beyond the Budget Estimates of 2025-26.
Among the supplementary demands are allocations for establishing an Economic Stabilisation Fund worth Rs 1 lakh crore. Additionally, approvals were sought for extra expenditures of Rs 19,230 crore for fertilizers’ subsidy and Rs 23,641 crore for subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Noteworthy allocations also include Rs 41,822 crore for the defense ministry.
Sitharaman highlighted that the Rs 1 lakh crore Economic Stabilisation Fund will provide fiscal flexibility for India to navigate global economic challenges. She emphasized that this fund will serve as a cushion against unexpected global adversities like the current Iran conflict.
Assuring an ample supply of fertilizers for farmers, the Finance Minister confirmed that the supplementary demands have made adequate provisions for this essential agricultural input. The passage of these demands in the Lok Sabha, amidst disruptions and opposition protests regarding LPG availability during the West Asia crisis, led to the adjournment of the House for the day.
As per the Revised Estimates for 2025-26, the fiscal deficit remains steady at 4.4% of the GDP, aligning with the levels projected in the Budget Estimates.
