The Centre on Tuesday sought Parliament’s nod to create a Rs 1 lakh crore Economic Stabilisation Fund (ESF) as part of the second supplementary demand for grants for gross additional spending of Rs 2.81 lakh crore in FY26. For the ESF, the Centre initially provided Rs 50,000 crore outlay in the revised estimate for FY26 on February 1. The allocation for the contingency buffer has doubled in the wake of the West Asia conflict. Besides revenue shocks, the ongoing crisis could inflate subsidies on fertilisers and cooking gas next year if the war between the US-Israel alliance and Iran continues for months.