New Delhi, March 13: Finance Minister Nirmala Sitharaman stated in the Lok Sabha on Friday that the government will keep the fiscal deficit for the fiscal year 2026 in line with revised estimates.
In Parliament, Sitharaman noted that even after proposals for additional spending, the fiscal deficit will remain consistent with the revised targets announced in the FY27 budget. She reiterated the government’s commitment to fiscal discipline and consolidation.
According to the Finance Minister, measures taken by the central government post-COVID-19 have strengthened the economy. Additionally, the country has enhanced its capacity to maintain fiscal discipline despite global shocks.
Furthermore, the Finance Minister proposed the establishment of an Economic Stabilization Fund. This fund aims to provide the country with additional fiscal capacity to robustly face global economic shocks.
Sitharaman explained that the proposed fund would offer fiscal headroom to address unexpected global crises, such as disruptions in supply chains and significant losses in key economic sectors due to major crises.
The objective of this fund is to stabilize the economy during periods of global uncertainty, similar to recent international crises.
Regarding the fund, the Finance Minister mentioned that the government is preparing economic stabilization measures in anticipation of unforeseen events.
On the ongoing conflicts involving the United States, Israel, and Iran, the Finance Minister acknowledged that the tensions in West Asia pose challenges for India. She assured that the government is continuously taking steps to address these circumstances.
Sitharaman further stated that the government is prepared to tackle potential challenges related to supply chain disruptions and energy supply, including LPG.
She emphasized that India’s robust macroeconomic framework enables the country to withstand external shocks without compromising fiscal stability.
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