The Economic Stabilisation Fund is a specialised fiscal tool introduced by the Ministry of Finance, Government of India, to provide financial flexibility during unforeseen economic shocks. It creates budgetary headroom, enabling the government to respond without disturbing overall fiscal stability.
The fund acts as a buffer against global and domestic uncertainties such as oil price spikes, energy shortages and supply chain disruptions caused by international conflicts. Its objective is to safeguard economic stability and ensure continuity in government expenditure during crises.
APSC Relevance: Important for Indian economy, fiscal policy tools and shock management mechanisms.
Course Purchase Query 