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flag India creates a ₹1 lakh crore fund to manage global economic shocks, backing key subsidies and defense spending without raising its deficit target.

flag India has announced a ₹1 lakh crore Economic Stabilisation Fund to bolster fiscal resilience against global shocks, including instability in West Asia. flag 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. flag 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. flag Key allocations include ₹19,230 crore for fertilizers, ₹23,641 crore for food subsidies, and ₹41,822 crore for defense. flag The government confirmed no shortage of fertilizers, with ample stocks and imports planned, and assured continued support for farmers and essential services.

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