Managing a crisis: Nirmala proposes ESF for resilience against global headwinds
Virendra Pandit
New Delhi: Finance Minister Nirmala Sitharaman on Friday proposed an “Economic Stabilization Fund” to provide fiscal headroom for the country to respond to unexpected global headwinds, the media reported.
It will boost resilience against crises, such as those arising from the ongoing war in West Asia.
The proposed Rs. 57,300 crores (USD 6.20 billion) fund will also help the government to respond to unanticipated supply chain disruptions and unexpected shocks to the economy, Sitharaman told Parliament on Friday.
This week, the Narendra Modi-led NDA government had sought Parliament’s approval for gross additional spending of Rs. 2.81 trillion, part of which will be offset by savings and higher receipts from ministries and departments.
There is no increase in overall expenditure beyond what was projected in the Union Budget for 2026-27, tabled in Parliament on February 1, Sitharaman said.
She also proposed additional fertiliser subsidies of about Rs. 19,230 crores to meet higher spending under the nutrient-based subsidy policy and urea subsidy payments.
India’s fertiliser subsidy bill has come under pressure after the Iran conflict disrupted energy supply routes through the Strait of Hormuz, a key corridor for global fertiliser shipments, pushing up prices of crop nutrients such as urea and ammonia and raising import costs for major buyers like India.
Sitharaman said there would be no shortfall in funds for fertiliser subsidies for farmers.
