Fund – Bharat Pulse News

The Centre has proposed a new economic stabilisation fund of Rs 57,381 crore to help India respond to global economic pressures, supply chain disruptions and other external shocks. Finance Minister Nirmala Sitharaman said the move is aimed at giving the government fiscal flexibility at a time when global uncertainty, including the West Asia conflict, is affecting trade flows, commodity prices and input costs. Economic Stabilisation Fund For Global Headwinds The proposed fund is designed to provide budgetary room for the government to respond quickly to unexpected global challenges. Sitharaman told Parliament that the allocation would help India deal with external risks such as supply disruptions, volatility in international markets and broader economic uncertainty. The announcement comes as the government seeks to shield the domestic economy from turbulence linked to geopolitical tensions and rising import costs in several sectors. Additional Spending Stays Within Budget Target The proposal is part of a larger request for parliamentary approval for gross additional expenditure. The government, however, said this would not lead to an increase in total spending beyond the level projected in the Union Budget. According to the finance minister, the extra allocation is being balanced through savings in other departments and higher receipts, allowing the Centre to maintain its broader fiscal path without breaching the budgeted expenditure framework. Fertiliser Subsidy Support Amid Import Pressure Along with the stabilisation fund, the Centre has also proposed additional fertiliser subsidy support to manage rising costs under urea and nutrient-based subsidy schemes. Import costs have come under pressure as disruptions in shipping routes, including through the Strait of Hormuz, have pushed up prices of key fertiliser inputs such as ammonia and urea. The government said there would be no shortage of subsidy support for farmers, signalling that agricultural input assistance will continue despite growing pressure from global market conditions.

Centre Sets Up Fund To Tackle Global Risks

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