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India creates a ₹1 lakh crore fund to manage global economic shocks, backing key subsidies and defense spending without raising its deficit target.
India has announced a ₹1 lakh crore Economic Stabilisation Fund to bolster fiscal resilience against global shocks, including instability in West Asia.
Finance Minister Nirmala Sitharaman said the fund, financed by ₹57,000 crore in new spending and ₹43,000 crore in savings, will provide fiscal flexibility without increasing the 2025-26 fiscal deficit beyond the 4.4% target.
The move supports a second batch of supplementary demands for grants totaling ₹2.81 lakh crore, with ₹2.01 lakh crore in net spending, offset by ₹80,000 crore in savings and receipts.
Key allocations include ₹19,230 crore for fertilizers, ₹23,641 crore for food subsidies, and ₹41,822 crore for defense.
The government confirmed no shortage of fertilizers, with ample stocks and imports planned, and assured continued support for farmers and essential services.
India crea un fondo de ₹ 1 lakh crore para manejar los shocks económicos globales, respaldando subsidios clave y gastos de defensa sin aumentar su objetivo de déficit.