Lok Sabha okays extra Govt spending of Rs 2.01 lakh crore in FY26
New Delhi, March 13
The Lok Sabha on Friday approved the second batch of Supplementary Demands for Grants, which will enable the government to spend an additional Rs 2.01 lakh crore in the current financial year.
The government had sought approval to spend a gross additional amount of Rs 2.81 lakh crore. However, with estimated additional receipts of Rs 80,000 crore during the current fiscal year, the net additional cash spending stands at Rs 2.01 lakh crore.
In her reply to the debate in the House, Finance Minister Nirmala Sitharaman said the new spending will not push the fiscal deficit beyond the government's target. "There is no increase in expenditure beyond the BE of 2025-26 due to the second Supplementary Demand for Grants," she said.
The supplementary demands include grants for spending on setting up an Economic Stabilisation Fund of Rs 1 lakh crore. The Parliament's approval was also sought for an extra spending of Rs 19,230 crore towards fertilisers' subsidy and Rs 23,641 crore for subsidies under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). Other major expenditure heads include Rs 41,822 crore for the defence ministry.
"The Rs 1 lakh crore Economic Stabilisation Fund will give fiscal headroom to allow India to respond to global headwinds," Sitharaman said.
She said the fund will act as a buffer to absorb shocks arising due to unforeseen global challenges, such as the ongoing Iran war.
The Finance Minister assured that there would be no shortage of fertilisers for farmers, and adequate provision has been made in the supplementary demands for grants.
The supplementary demands were passed through a voice vote in the Lok Sabha amid disruptions. Opposition members protested over the availability of LPG in the country against the backdrop of the ongoing West Asia crisis. Soon after the passage of the demands, the House was adjourned for the day.
According to the Revised Estimates for 2025-26, the fiscal deficit remains unchanged at 4.4 per cent of GDP, which is the same level projected in the Budget Estimates.
— IANS
Reader Comments
Good to see continued support for PMGKAY and fertiliser subsidies. These are essential for our farmers and the poor. But I hope the process is transparent and the funds reach the intended beneficiaries without any leakage. That's always the real challenge.
Rs 2.01 lakh crore is a massive amount! While the fiscal deficit target is maintained, I have a respectful criticism: such large supplementary demands should be debated more thoroughly, not passed amid disruptions. The opposition's concerns about LPG availability are valid given the West Asia crisis. Parliament needs to function better.
The defence allocation of over Rs 41,000 crore is crucial. With the complex security environment around us, strengthening our armed forces is non-negotiable. This spending seems justified.
Assurance on fertiliser supply is a big relief for the farming community. Kharif season is crucial. Hope the subsidies are implemented smoothly so that farmers don't face any shortage or price hikes. Jai Kisan! 🙏
Overall, the spending seems targeted at the right areas - economic buffer, food security, defence, and farmer welfare. If managed well, it should help India navigate global headwinds. Let's see the execution on the ground.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.