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India's parliament approved ₹2.01 lakh crore in extra spending for 2025-26, keeping fiscal deficit on track.
The Lok Sabha approved a second batch of supplementary spending, authorizing an additional ₹2.01 lakh crore in cash expenditure for the 2025-26 fiscal year, bringing total extra spending to ₹2.81 lakh crore before accounting for ₹80,000 crore in estimated receipts. Finance Minister Nirmala Sitharaman confirmed the move keeps the fiscal deficit within the revised target of 4.4% of GDP, unchanged from the original budget estimate. Key allocations include ₹41,822 crore for defence, ₹1.25 lakh crore for rural employment programs, and ₹1 lakh crore for an Economic Stabilisation Fund to buffer against global economic shocks. The vote passed by voice vote amid opposition protests over LPG availability linked to the West Asia crisis, with the government asserting no shortages exist.