Finance Ministry seeks Parliamentary nod to spend Rs 2.81 lakh cr more in FY26, Pg19

Key Highlights:

• The Finance Ministry seeks Parliament's approval for an additional Rs 2.81 lakh crore spending in FY26.
• Rs 1 lakh crore is allocated for an 'inter account transfer' under the Economic Stabilization Fund.
• Rs 19,230 crore is earmarked for fertilizer subsidies, including Rs 15,000 crore for the Nutrient Based Subsidy Policy.
• The Union Budget for FY27 revised the fertilizer subsidy allocation to Rs 1.86 lakh crore from Rs 1.68 lakh crore for the current fiscal year.

Detailed Insights:

• The additional spending includes Rs 9,000 crore for imported Phosphatic and Potassic fertilizers and Rs 4,230 crore for urea subsidy.
• Global fertilizer prices have increased due to the conflict in West Asia, impacting India's import costs.
• Gulf countries supply approximately three-fourths of India's urea imports, while Saudi Arabia is a major source for di-ammonium phosphate.
• The net extra spending is estimated at Rs 2.01 lakh crore, offset by savings of Rs 80,145.71 crore from various ministries.
• The Economic Stabilization Fund aims to address unforeseen expenditures due to volatile global dynamics and economic uncertainty.
• Total expenditure for the first 10 months of FY26 reached Rs 36.9 lakh crore, which is 74.3% of the revised estimate of Rs 49.65 lakh crore.

Key Concepts Involved:

• Fertilizer Subsidy: Government financial assistance to reduce the cost of fertilizers for farmers.
• Economic Stabilization Fund: A fund to address unexpected economic challenges and maintain stability.
• Nutrient Based Subsidy (NBS) Policy: A policy to promote balanced use of fertilizers based on nutrient content.