{"id":358155,"date":"2026-03-14T15:50:50","date_gmt":"2026-03-14T10:20:50","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=358155"},"modified":"2026-03-14T15:50:50","modified_gmt":"2026-03-14T10:20:50","slug":"supplementary-demands-for-grants-and-economic-stabilisation-fund","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/supplementary-demands-for-grants-and-economic-stabilisation-fund\/","title":{"rendered":"Supplementary Demands for Grants and Economic Stabilisation Fund"},"content":{"rendered":"<p><strong>News: <\/strong>Lok Sabha approved the Second Batch of Supplementary Demands for Grants for 2025\u201326, including allocation for an Economic Stabilisation Fund to address global economic shocks.<\/p>\n<h2>About Economic Stabilisation Fund (ESF)<\/h2>\n<figure id=\"attachment_358162\" aria-describedby=\"caption-attachment-358162\" style=\"width: 360px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-358162\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-ET-1.jpg?resize=360%2C317&#038;ssl=1\" alt=\"Supplementary Demands for Grants and Economic Stabilisation Fund\" width=\"360\" height=\"317\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-ET-1.jpg?resize=300%2C264&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-ET-1.jpg?resize=768%2C676&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/03\/Source-ET-1.jpg?w=1001&amp;ssl=1 1001w\" sizes=\"auto, (max-width: 360px) 100vw, 360px\" \/><figcaption id=\"caption-attachment-358162\" class=\"wp-caption-text\">Source &#8211; ET<\/figcaption><\/figure>\n<ul>\n<li>The <strong>Economic Stabilisation Fund (ESF)<\/strong> is a proposed <strong>fiscal mechanism<\/strong> to provide <strong>financial space for responding to global economic disruptions<\/strong>.<\/li>\n<li><strong>Proposed by:<\/strong> Finance Ministry.<\/li>\n<li><strong>Corpus Size:<\/strong> The total proposed outlay for the fund is \u20b9<strong>1 lakh crore<\/strong>, with \u20b9<strong>57,381 crore<\/strong> proposed in the <strong>supplementary demands<\/strong> and the <strong>rest<\/strong> added through <strong>savings of ministries and departments<\/strong>.<\/li>\n<li><strong>Purpose:<\/strong> The fund aims to provide fiscal headroom for India to respond to <strong>global headwinds, recent crises, unanticipated supply chain disruptions, and unexpected shocks to sub-sectors of the economy<\/strong>.<\/li>\n<li><strong>Managed by:<\/strong> The fund is placed under the<strong> reserve funds managed by the Department of Economic Affairs (DEA)<\/strong>.<\/li>\n<li><strong>Impact:<\/strong> The fund will <strong>enable India to absorb economic shocks and respond to global crises<\/strong> while maintaining the fiscal consolidation roadmap.<\/li>\n<\/ul>\n<h2>About Supplementary Demands for Grants<\/h2>\n<ul>\n<li>Supplementary Demands for Grants are <strong>additional financial approvals sought by the government during a financial year to meet expenditure not provided in the original budget<\/strong>.<\/li>\n<li><strong>Constitutional back up: <\/strong>Supplementary grants derive authority from<strong> Article 115 of the Constitution of India, <\/strong>which deals with additional and excess demands for grants.<\/li>\n<li><strong>Process<\/strong>\n<ul>\n<li><strong>Initiation: <\/strong>The <strong>concerned ministry<\/strong> identifies additional financial requirements and <strong>submits the proposal to the Ministry of Finance<\/strong>.<\/li>\n<li><strong>Examination by Ministry of Finance: <\/strong>The Department of Expenditure reviews the proposal and evaluates its financial justification.<\/li>\n<li><strong>Preparation of Supplementary Demands: <\/strong>Approved proposals are consolidated and presented to Parliament as Supplementary Demands for Grants.<\/li>\n<li><strong>Parliamentary Approval:<\/strong> <strong>Lok Sabha<\/strong> discusses and <strong>votes<\/strong> on the demands, after which an Appropriation Bill authorises withdrawal from the Consolidated Fund of India.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Types of Supplementary Grants<\/strong>\n<ul>\n<li><strong>Supplementary Grant:<\/strong> It is granted when the <strong>funds authorised<\/strong> in the <strong>original budget<\/strong> are <strong>insufficient<\/strong> or when <strong>new services<\/strong> need financing during the year.<\/li>\n<li><strong>Additional Grant:<\/strong> It is granted for a <strong>new service or project<\/strong> that was <strong>not included in the original budget<\/strong> but is introduced during the financial year.<\/li>\n<li><strong>Excess Grant:<\/strong> It is granted when <strong>expenditure exceeds the amount authorised for a service in the Appropriation Act<\/strong> of the previous year.<\/li>\n<li><strong>Vote on Account:<\/strong> It is a <strong>temporary<\/strong> provision that allows government <strong>expenditure in the early part of the financial year<\/strong> until the full budget is passed.<\/li>\n<li><strong>Vote of Credit:<\/strong> It is granted for <strong>unexpected and exceptional expenditure such as war<\/strong> when the details cannot be precisely stated in advance.<\/li>\n<li><strong>Exceptional Grant:<\/strong> It is granted for a <strong>special purpose<\/strong> that <strong>does not form part of the current year\u2019s normal services.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Allocations in FY26<\/strong>\n<ul>\n<li>\u20b9<strong>41,430 crore<\/strong> for Defence Services.<\/li>\n<li>\u20b9<strong>6,140 crore<\/strong> for the Ex-Servicemen Contributory Health Scheme.<\/li>\n<li>\u20b9<strong>37,886 crore<\/strong> for local bodies of states.<\/li>\n<li>\u20b9<strong>19,230 crore<\/strong> for fertilizer subsidies.<\/li>\n<li>\u20b9<strong>30,000 crore<\/strong> for <strong>Viksit Bharat \u2013 <\/strong><strong>G RAM-G act<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: Lok Sabha approved the Second Batch of Supplementary Demands for Grants for 2025\u201326, including allocation for an Economic Stabilisation Fund to address global economic shocks. About Economic Stabilisation Fund (ESF) The Economic Stabilisation Fund (ESF) is a proposed fiscal mechanism to provide financial space for responding to global economic disruptions. Proposed by: Finance Ministry.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/supplementary-demands-for-grants-and-economic-stabilisation-fund\/\">Continue reading <span class=\"screen-reader-text\">Supplementary Demands for Grants and Economic Stabilisation Fund<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1760,12039],"tags":[11872],"class_list":["post-358155","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-polity-and-nation","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=358155"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/358155\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=358155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=358155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=358155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}