Centre allocates ₹57,381 cr. to Economic Stabilisation Fund to counter global headwinds
The Centre has allocated ₹57,381 crore to an Economic Stabilisation Fund through supplementary grants. This move aims to provide fiscal space to address global uncertainties like the $100-per-barrel oil shock, energy shortages, and supply chain disruptions from the West Asia conflict. Finance Minister Nirmala Sitharaman stated in the Lok Sabha that this allocation would not impact the fiscal deficit target for 2025-26. The Lok Sabha cleared a net cash outgo of ₹2.01 lakh crore, including this allocation, emphasizing a strong macroeconomic framework post-COVID-19 to absorb economic shocks without deviating from the fiscal consolidation road map.
Key Points
- The Centre established an Economic Stabilisation Fund with ₹57,381 crore to manage global economic uncertainties.
- The fund aims to provide fiscal headroom to respond to global headwinds, including oil shocks and supply chain disruptions.
- Finance Minister Nirmala Sitharaman assured that this allocation would not lead to missing the fiscal deficit target for 2025-26.
- The Lok Sabha approved a net cash outgo of ₹2.01 lakh crore for additional expenditures.
Exam Facts
- Amount allocated to Economic Stabilisation Fund: ₹57,381 crore.
- Net cash outgo cleared by Lok Sabha: ₹2.01 lakh crore.
- Fiscal deficit target for 2025-26 will be met.
- Finance Minister: Nirmala Sitharaman.
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