New Delhi. Finance Minister Nirmala Sitharaman said in the Lok Sabha on Friday that the government will keep the fiscal deficit for FY26 in line with the revised estimates.
Sitharaman said in Parliament that even after the proposal for additional expenditure, the fiscal deficit will remain in line with the revised target announced in the FY27 budget. He also reiterated that the government remains committed to fiscal discipline and fiscal consolidation. According to the Finance Minister, the steps taken by the Central Government after the Covid pandemic have strengthened the country’s economy and also increased the country’s ability to maintain fiscal discipline even after global shocks.
Additionally, the Finance Minister proposed the Economic Stabilization Fund, which will provide additional fiscal capacity to countries to better respond to global economic shocks.
Sitharaman said the proposed fund will provide the government fiscal headroom to deal with unexpected global crises such as disruption in supply chains, damage to key sectors of the economy due to a major crisis and other external shocks.
The fund aims to help stabilize the economy during periods of global uncertainty such as the recent international crises.
Regarding this fund, the Finance Minister said that measures for economic stabilization are being prepared by the government in anticipation of unexpected developments.
On the ongoing war between America, Israel and Iran, the Finance Minister said that the ongoing tension in West Asia is creating challenges for India. Also said that the government is continuously taking steps to deal with these situations.
Sitharaman further said that the government is prepared to deal with issues such as supply chain disruptions and potential challenges related to energy supply, including LPG.
He said India’s strong macroeconomic framework enables the country to withstand external shocks without compromising fiscal stability.
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