Economic Stabilisation Fund to help government respond to global challenges: Sitharaman

Finance Minister Sitharaman announces a 1 lakh crore Economic Stabilisation Fund to bolster India's response to global challenges.

Finance Minister Nirmala Sitharaman on Friday (March 13, 2026) said the ₹1 lakh crore Economic Stabilisation Fund will give fiscal headroom to allow India to respond to global headwinds.

Replying to the debate on the second batch of supplementary demands for grants in the Lok Sabha, she said the fund will act as a buffer to absorb shocks arising due to unforeseen global challenges like the current one in West Asia.

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“The ₹1 lakh crore Economic Stabilisation Fund will give fiscal headroom to allow India to respond to global headwinds,” she said.

Through the second batch of supplementary demands, the government sought Lok Sabha approval for spending a gross ₹2.81 lakh crore extra in the current fiscal year. With additional receipts of ₹80,000 crore budgeted for the current fiscal year, the net additional cash spending will be ₹2.01 lakh crore.

Ms. Sitharaman said the fiscal deficit for the current financial year (2025-26) will be within the Revised Estimates (RE).