The government on Friday proposed a Rs 1 lakh crore Economic Stabilisation Fund to offset any potential negative impact of the ongoing West Asia conflict and to navigate global headwinds.Announcing the fund in the Lok Sabha while replying to the debate on the second batch of supplementary demands, Finance Minister Nirmala Sitharaman said the fund would provide fiscal headroom to India.“The Economic Stabilisation Fund will provide fiscal headroom to allow India to respond to global headwinds such as the recent crisis, unanticipated supply chain disruptions, unexpected shocks to sub-sectors in Indian economy and any other event that may have significant fiscal implications. So in anticipation of what cannot be anticipated, we are coming up with Economic Stabilisation Fund,” she said.Later, the Lok Sabha approved — by a voice vote — supplementary demands for grants totalling an additional Rs 2.01 lakh crore to be spent for the remaining period of 2025–26 fiscal year. This was marked by repeated Opposition protests in the Well of the House.The second batch of supplementary demands for grants provides for inter-account transfers of Rs 1 lakh crore for the creation of the Economic Stabilisation Fund. Total outgo towards the fund will be Rs 57,381.84 crore. The remainder will come from savings.The minister said additional expenditure would not impact the fiscal deficit for financial year 2025-26, which will remain within the Revised Estimates (RE).She also attacked the Opposition for not heeding her reply and for taking “irresponsible positions”.“It is ironic that even while I am speaking about how the government is preparing itself to face unexpected events, including supply chain disruptions and issues related to LPG, the Opposition is not willing to listen to the reply. Instead, they prefer to pursue their own agenda,” she said as Opposition MPs raised slogans while she spoke.