Nirmala Sitharaman Reaffirms Fiscal Discipline During Lok Sabha Address On Supplementary Demands

Finance Minister Nirmala Sitharaman, while addressing the Lok Sabha on the Supplementary Demands for Grants (Second Batch) for 2025–26, emphasised the government’s commitment to maintaining fiscal discipline.

She stated that all additional provisions brought through technical and cash supplementary demands will remain within the fiscal deficit target set in the Union Budget 2026–27.

Sitharaman noted that the government has revised the FY26 fiscal deficit to 4.4 per cent of GDP and set a lower FY27 target of 4.3 per cent, showcasing its ongoing fiscal consolidation. She assured that the ₹2.81 lakh crore in supplementary spending across 61 grants will maintain fiscal discipline.

The Finance Minister confirmed that farmers will face no fertiliser shortages, with adequate provisions in place, and highlighted that the Economic Stabilisation Fund, allocated ₹57,381.84 crore, provides additional fiscal headroom to tackle global economic challenges.

Sitharaman reiterated that the assurances given in the House, including those related to the second batch of Supplementary Demands, fully adhere to the fiscal deficit framework presented on February 1, 2026.

The government remains committed to balancing expenditure requirements with fiscal prudence, ensuring financial stability while addressing essential development and social needs.

The Finance Minister’s statements underscore the government’s strategy of fiscal responsibility combined with targeted economic support.

By maintaining the fiscal deficit within limits and securing essential supplies for farmers, India aims to sustain growth, manage global uncertainties, and continue its path toward economic resilience and stability.

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