The government remains committed to keeping the fiscal deficit within the revised estimates for FY26, even as it brings in the second batch of supplementary demands for grants, Finance Minister Nirmala Sitharaman said on Friday.
Replying to the debate in the Lok Sabha on the Supplementary Demands for Grants (Second Batch) for 2025–26, the Finance Minister said the additional spending proposals would remain within the fiscal deficit target presented in the Union Budget 2026–27.
"I wish to reiterate that with all the additional provisions we are bringing through technical and cash supplementary demands, no Member of Parliament should wonder whether I will be able to achieve the fiscal deficit target set while presenting the Budget in this House," she told the house.
The Budget for 2026–27 clearly states the fiscal deficit target for the year ending March 31, 2027. The fiscal deficit in 2026-27 is targeted at 4.3 per cent of GDP, lower than the revised estimate of 4.4 per cent of GDP in 2025-26, continuing the government's fiscal consolidation path towards a lower deficit target in subsequent years.
FM Sitharaman further stated that "I would like to reiterate that the assurances given in this House, including those related to the second Supplementary Demands for Grants, will remain within the fiscal deficit target that was presented in Parliament on February 1, 2026".
The Supplementary Demands entail a gross expenditure of Rs 2.81 lakh crore, with 61 grant requests under it. Sitharaman reiterated that the supplementary demands are within the fiscal deficit number mentioned in the Budget.
She said there will be no shortage of fertilisers for farmers, and adequate provisions have already been made. "The Economic Stabilisation Fund will give fiscal headroom to allow India to respond to global headwinds," she said, adding that Rs 57,381.84 crore has been allocated for the Fund.