India’s Fiscal Deficit To Remain Within FY26 Revised Estimates, Says Finance Minister Sitharaman

India’s fiscal deficit will remain within the revised estimates for the financial year 2025–26, Finance Minister Nirmala Sitharaman told the Lok Sabha during the Budget Session on March 13, according to a report by PTI.

The government has estimated the fiscal deficit for FY26 at 4.4% of gross domestic product, the same level projected in the Budget Estimates for the year. Sitharaman made the statement while replying to the debate on the second batch of supplementary demands for grants in Parliament.

According to official figures presented in the House, the Centre has revised its total expenditure estimate for the current financial year to ₹49.65 lakh crore from the earlier Budget Estimate of ₹50.65 lakh crore.

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Government Spending And Fiscal Data

Data released by the Controller General of Accounts shows that the Union government had spent ₹36.90 lakh crore as of the end of January in the current fiscal year.

Addressing the Lok Sabha, Sitharaman said there had been no increase in expenditure beyond the Budget Estimate for FY26 due to the second supplementary demands.

The Lok Sabha approved the second batch of supplementary demands for grants, allowing the Centre to undertake additional expenditure during the financial year. According to PTI, Parliament cleared additional spending of ₹2.01 lakh crore.

The government had sought approval for gross additional expenditure of ₹2.81 lakh crore, supported by additional receipts of ₹80,000 crore.

Economic Stabilisation Fund Proposal

During the debate, Sitharaman also announced the creation of a ₹1 lakh crore Economic Stabilisation Fund. According to PTI, the proposed fund is intended to provide fiscal flexibility to address global economic shocks.

The minister told Parliament that the fund would serve as a buffer to absorb economic shocks arising from unforeseen global developments, including the ongoing conflict in West Asia.

The supplementary demands also include additional allocations for several sectors. According to PTI, the proposals include ₹19,230 crore for fertiliser subsidies and ₹23,641 crore under the Pradhan Mantri Garib Kalyan Anna Yojana.

Additional spending provisions include ₹41,822 crore for the defence ministry, according to the government’s supplementary demand documents.

Appropriation Bill And Parliamentary Business

According to ANI, the finance minister was also scheduled to introduce the Appropriation Bill, 2026, in the Lok Sabha. The bill seeks authorisation for the withdrawal of additional funds from the Consolidated Fund of India for government expenditure during the financial year 2025–26.

The ongoing Budget Session of Parliament began on January 28 with the President’s address to a joint sitting of both Houses and is scheduled to continue until April 2. According to parliamentary records cited by ANI, the session includes 30 sittings spread across 65 days.

The approval of supplementary demands, coupled with ongoing discussions on other budget-related issues, has led the government to state that its fiscal targets for FY26 are in line with its revised estimates presented in Parliament.