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Economic Stabilisation Fund 2026: ₹57,381 Crore Shock Buffer

20 March 20261 min read
ECONOMYEconomicStabilisation Fund2026: ₹57,381 CroreShock Buffer20 March 2026safalsetu.com

Why in the news

To cushion the economy from external shocks, the Centre earmarked ₹57,381 crore for a special Economic Stabilisation Fund.

Key facts

  • Allocation: ₹57,381 crore; created by Ministry of Finance.
  • Guards against: oil price shocks (for example $100 per barrel), energy shortages, supply chain disruptions and geopolitical conflicts.

About the fund

  • A special fiscal mechanism that acts as a financial buffer in economic shocks.
  • Gives stability without disturbing the Union Budget.
  • Used for unexpected expenditure.

Exam angle

  • Fund size: ₹57,381 crore.
  • Funding route: Supplementary Demands for Grants.
  • Nodal ministry: Finance.

Test yourself

1. What is the allocation made to the Economic Stabilisation Fund in 2026?

The allocation is ₹57,381 crore.

2. Through which route is the Economic Stabilisation Fund allocated?

The fund is allocated through Supplementary Demands for Grants.

3. What fiscal deficit target for FY26 is the Economic Stabilisation Fund meant to keep intact?

The fund helps hold the deficit near 4% of GDP.