Economic Stabilisation Fund (ESF)

In March 2026, the Union Finance Ministry proposed the creation of Economic Stabilisation Fund (ESF).

What is ESF?

  • About: It aims to create fiscal space that would enable the country to effectively respond to global economic shocks and unforeseen crises.
  • Financial Buffer: It functions as a financial buffer, helping absorb external volatility without disturbing the national budget.
  • Need: This move comes in response to intensifying global headwinds, particularly the volatility in energy prices and supply chain disruptions caused by the ongoing West Asia conflict.

How it Works?

Fund Allocation

  • The government allocates funds (currently Rs. 57,381 crore) through Supplementary Demands for ....
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