Context:
The Union Government proposed an Economic Stabilisation Fund to provide fiscal space to manage global economic shocks.
About Economic Stabilisation Fund:
- Purpose: To provide cushion against global economic headwinds such as oil price shocks, supply-chain disruptions and external crises without deviating from fiscal consolidation targets.
- Allocation: Total proposed size of fund is Rs. 1 lakh crore. Currently allocated ₹57,381 crore.
- Source of Funds: Created through the Supplementary Demand for Grants approved by Parliament (under Article 115 for additional expenditure beyond the Union Budget).
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