Lok Sabha Approves 2.01 Lakh Crore Supplementary Grants

In New Delhi on March 13, 2026, India's Lok Sabha approved the second batch of supplementary demands for grants, authorizing the government to incur an additional net expenditure of 2.01 lakh crore rupees for the current fiscal year ending March 31, 2026. Finance Minister Nirmala Sitharaman assured lawmakers that this spending would not exceed the budget estimates and would keep the fiscal deficit at 4.4 percent of gross domestic product, in line with revised estimates.

The approval came during the ongoing budget session of Parliament, passed by voice vote amid protests from opposition members raising concerns over liquefied petroleum gas shortages linked to the conflict in West Asia. The supplementary demands seek gross additional spending of 2.81 lakh crore rupees, offset by projected additional receipts of 80,000 crore rupees. Sitharaman, replying to the debate, emphasized fiscal discipline, stating, "There is no increase in expenditure beyond the budget estimates of 2025-26 due to the second supplementary."

A key component of the demands is the allocation toward establishing a 1 lakh crore Economic Stabilisation Fund, designed to provide fiscal flexibility amid global...