If We Borrow, We Borrow to Build, says FM Sitharaman

MUMBAI:
Finance Minister Nirmala Sitharaman on Monday said that Prime Minister Narendra Modi-led government’s “big shift in Budget-making” is ensuring a responsible approach to handling taxpayers’ money which is reflected in borrowings directed toward capital asset building.

“If we borrow, we borrow to build,” she remarked.

In her address at a post-budget conference with industry stakeholders, the Finance Minister highlighted that the Budget for 2025-16 has committed to a fiscal deficit path of below 4.5 per cent of GDP set in the July Budget.

She said that the Capex (capital expenditure) in the Budget 2025-26 has increased by 10.2 per cent compared to last year with close to Rs 16 lakh crore being allocated for it.

“It is true that we have significantly enhanced the Budget for capital expenditure,” the Finance Minister said.

Sitharaman’s statement comes as a sharp riposte to the opposition’s claim that capex outlay had not been increased in the Budget.

The Finance Minister also highlighted that the Budget offers concessions to taxpayers while also ensuring provisions for capital asset building. The budget gives taxpayers flexibility whether to save, spend, or invest, she added.

She thanked the Prime Minister for considering and rewarding taxpayers for income tax relief up to those earning up to Rs 12 lakh a year. As many as 1 crore taxpayers in the middle-income class are expected to benefit from the move.

Sitharaman is engaging with industry stakeholders in the commercial capital to address key concerns and opportunities arising from the Union Budget 2025. This interaction is part of a broader outreach programme to engage with business leaders and policymakers on economic priorities.

The discussion is expected to cover policy measures, taxation, and industry-specific initiatives outlined in the Budget.

The Budget for 2025-26 aims to accelerate employment-led inclusive growth, propelled by investments in the agricultural and rural sector, MSMEs and exports while sticking to the fiscal consolidation path.

Apart from infrastructure, rural development and agriculture will be driving the growth in spending. The Centre’s overall expenditure is estimated to increase from Rs 47.2 lakh crore in FY25RE to Rs 50.7 lakh crore in FY26BE.

The key domains covered in the Union Budget include taxation, power, urban development, mining, the financial sector, and regulatory reforms. These areas are central to the government’s focus on driving growth, improving infrastructure, enhancing governance, and ensuring sustainable development across various sectors.