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Informist, Friday, Mar. 13, 2026

 

--Lok Sabha passes 2nd batch of supplementary demand for grants for FY26 

--Sitharaman: Set up econ stabilisation fund to address unexpected crisis 
--CONTEXT: Sitharaman speaking in Lok Sabha on FY26 2nd supplementary demand 
--Sitharaman: To meet FY26 fiscal gap aim despite 2nd supplementary demand 

 

NEW DELHI – The Lok Sabha Friday passed the second batch of Supplementary Demands for Grants for 2025–26 (Apr-Mar), under which the Centre sought approval for net additional expenditure of INR 2.01 trillion. Finance Minister Nirmala Sitharaman had tabled the demands for grants Tuesday in Parliament to seek both the Houses' approval for spending INR 2.81 trillion on a gross basis, of which INR 801.46 billion is set to be met from enhanced receipts or recoveries of the ministries and departments.

 

Within the extra spending demand, the largest chunk of INR 590.85 billion is for meeting expenditure towards inter-account transfers to the Gold Reserve Fund-Sovereign Gold Bond Scheme, 2015, and the Economic Stabilization Fund. Given the contemporary uncertain geopolitical conditions, the government has set up this fund to mitigate unanticipated economic crises, Sitharaman said in the Lok Sabha during a discussion on the second batch of supplementary demand for grants.  

 

The net cash outgo under the second Supplementary Demands for Grants of FY26 is much higher than the amount sought in the last few financial years, raising concerns about possible fiscal slippage. This is also higher than the approval for net spending of INR 414.55 billion sought by the government in the first batch of supplementary demands for grants. The government had sought INR 515 billion in the second batch of supplementary demands for grants in FY25 and INR 787 billion in FY24. 

 

But irrespective of a higher demand, the government would "no doubt" meet its fiscal deficit aim, the finance minister assured the Lower House. The Budget for FY27 estimates the fiscal deficit target for FY26 at 4.4% of GDP. On an absolute basis, the fiscal deficit for the current financial year is projected at INR 15.59 trillion.  End

 

Reported by Krity Ambey

Edited by Tanima Banerjee

 

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