Union Finance Minister Nirmala Sitharaman said the government has strengthened India’s macroeconomic framework, enabling the economy to absorb various shocks while staying on the fiscal consolidation path.
Replying to the discussion on the second batch of Supplementary Demands for Grants for 2025-26 in the Lok Sabha, Sitharaman said the government has proposed an Economic Stabilisation Fund of Rs 57,381 crore to provide fiscal headroom for responding to global uncertainties.
She said the fund will help India manage global crises, supply chain disruptions and unexpected shocks affecting different sectors of the economy.
The minister also said that Rs 41,430 crore has been allocated for Defence Services revenue expenditure in the supplementary demands. In addition, Rs 6,140 crore has been earmarked for the Ex-Servicemen Contributory Health Scheme to ensure healthcare services for former armed forces personnel.
Sitharaman added that Rs 37,886 crore has been allocated as grants to states for local bodies, while Rs 19,230 crore has been provided as fertiliser subsidy to ensure adequate availability for farmers.
She said that during periods of global uncertainty, all stakeholders must work together in the national interest to support economic stability.