Borrowing Focused on Nation-Building, Not Debt Accumulation: FM Sitharaman
Finance Minister Nirmala Sitharaman reasserted the government's intention of responsible fiscal policy, indicating that borrowings are strategically invested in the creation of capital assets. Addressing a post-budget conference with industry participants, she stressed that the Narendra Modi government has ushered in a 'big shift in Budget-making' by adopting a cautious approach to taxpayers' funds.
If we borrow, we borrow to build," Sitharaman declared, refuting opposition accusations that the capital expenditure (capex) outlay had not gone up in the Budget. She emphasized that the 2025-26 Budget continues to follow the below 4.5% of GDP fiscal deficit target and raises capex spending by 10.2% to almost Rs 16 lakh crore".
The Finance Minister emphasized that not only does the Budget encourage the creation of capital assets, it also offers middle-income taxpayers a relief in tax. She expressed that the government has brought up to Rs 12 lakh annual salary earners under tax benefit, a relief to a crore of tax payers. The Budget, according to her, offers an individual more space to save, spend, and invest based on his or her objectives.
As part of a wider outreach, Sitharaman met industry leaders in Mumbai to deliberate on policy initiatives, taxation, and sectoral initiatives from the Union Budget 2025-26. The deliberations are intended to address issues and identify opportunities for economic growth.
The Budget reaffirms the government's emphasis on employment-driven inclusive development, with a greater push towards investments in agriculture, rural development, MSMEs, and exports. The total expenditure is estimated to increase from Rs 47.2 lakh crore in FY25 (Revised Estimates) to Rs 50.7 lakh crore in FY26 (Budget Estimates). Infrastructure, urban development, mining, power, and regulatory reforms are continuing areas of priority, aligning with India's long-term growth path.
With a balance between development and fiscal prudence, the Budget provides the foundation for sustainable growth while providing for responsible public finance management.
