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Lok Sabha Clears Supplementary Grants; Government Emphasises Economic Stabilisation Fund

Source The Hindu

New Delhi: The Lok Sabha on Friday passed the Supplementary Demand for Grants during the ongoing Budget Session of Parliament, approving additional spending proposals presented by the government. The move allows the Centre to allocate extra funds for various ministries and departments to meet financial requirements beyond the previously approved Budget.

During the discussion, Finance Minister Nirmala Sitharaman highlighted the government’s focus on strengthening fiscal stability and managing economic uncertainties through the proposed Economic Stabilisation Fund. She said the initiative aims to create a financial cushion that can help the country respond effectively to global economic shocks and domestic challenges.

Sitharaman explained that the fund would support key sectors during periods of volatility, ensuring that essential government programmes and welfare initiatives continue without disruption. She added that maintaining macroeconomic stability remains one of the government’s top priorities.

The finance minister also noted that the supplementary grants were necessary to meet urgent spending needs and to ensure smooth implementation of several ongoing schemes and infrastructure projects.

Members from the opposition raised questions about the allocation and utilisation of funds, urging the government to maintain transparency and fiscal discipline. However, the treasury benches defended the proposals, arguing that additional funding was required to address emerging economic and administrative needs.

With the passage of the Supplementary Demand for Grants, the government now has parliamentary approval to utilise additional funds for the current financial year, while continuing to implement policies aimed at supporting economic growth and stability.

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