NEW DELHI — Finance Minister Nirmala Sitharaman informed the Lok Sabha on Friday that India is well-equipped to handle global economic shocks, confirming that there is no shortage of fertilizers for the nation’s farmers.
Replying to the debate on the second batch of supplementary demands for grants, the Minister highlighted the creation of a ₹1 lakh crore Economic Stabilisation Fund designed to shield the Indian economy from unforeseen international crises, such as the ongoing conflict in West Asia.
Key Financial Highlights:
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Economic Buffer: The new ₹1 lakh crore fund provides “fiscal headroom,” acting as a shock absorber against global headwinds.
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Fertilizer Security: Parliament approved an additional ₹19,230 crore for fertilizer subsidies to ensure uninterrupted supply and price stability for farmers.
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Fiscal Discipline: The Minister stated that the fiscal deficit for FY 2025-26 will remain within the 4.4% of GDP target, despite the extra spending.
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Welfare & Defense: The supplementary demands include ₹23,641 crore for the PMGKAY (food security) and ₹41,822 crore for the Ministry of Defence.
By The Numbers:
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Gross Extra Spending: ₹2.81 lakh crore.
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Net Cash Outgo: ₹2.01 lakh crore (offset by ₹80,000 crore in additional receipts).
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Revised Total Expenditure: Estimated at ₹49.65 lakh crore for the current fiscal year.
