The Government of India has proposed to create an Economic Stabilization Fund to deal with global economic challenges. Union Finance Minister Nirmala Sitharaman gave this information in Parliament on Friday. The purpose of this proposed fund of about 573 billion rupees (about 6.20 billion dollars) is to provide additional financial scope to the government, so that it can face the economic challenges coming around the world.
Union Minister Sitharaman said that this fund will also help in dealing with sudden disruptions in the supply chain and unexpected shocks on the Indian economy. This week the government has also sought approval from the Parliament for additional expenditure of Rs 2.81 lakh crore. Some part of this additional expenditure will be met from the savings and higher receipts of the ministries and departments.
Government expenditure will not exceed the budget limit
The Finance Minister clarified that the total government expenditure will not exceed the limit set in the budget. Besides, the government has also proposed to provide an additional amount of about Rs 192.30 billion for fertilizer subsidy. This money will be given for payment of nutrient-based subsidy policy and urea subsidy.
The war stopped the supply of fertilizer.
In fact, due to the US-Iran war, the supply of fertilizer passing through the Strait of Hormuz has been affected. This sea route is an important sea route for global fertilizer supply. Due to this, the prices of crop nutrients like urea and ammonia have increased and the costs for big importing countries like India have also increased. Sitharaman said that there will be no reduction in the fertilizer subsidy fund for farmers.
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