Government has not cut down on any sectoral allocations in Union Budget: FM Sitharaman

Finance Minister Nirmala Sitharaman said that the government has not cut down on any sectoral allocations in the Union Budget 2025-26. Replying to the discussion on the Budget in the Rajya Sabha on Thursday, Ms Sitharaman said that the budget aims to accelerate growth besides encouraging private investment. The minister said that there is no reduction in the effective capital expenditure as claimed by the Opposition. The Minister said that India under the Narendra Modi-led government is now among the 5th among the top global economies. She said this Budget has been made during a very difficult time and the challenges. 

The Finance Minister said that there was a drastic reduction in the short-term borrowings in the budget for ensuring greater liquidity in the market for the private sector. She said that the budget assists prospective entrepreneurs in setting up of new micro-enterprises particularly in the non-farm sector for generating employment by providing margin money and subsidy to the bank loan. Regarding the questions on inflation, the Minister said that as per the data released yesterday, the CPI index in January 2025 has fallen to 4.31% from 5.22%. She said that the index was now closer to the RBI’s lower inflation target. She added that the government will ensure that prices do not burden people.

Ms Sitharaman said that the government is making all efforts to keep the inflation under check. She rejected the allegations that the states were not consulted before the budget saying that every year when the budget is made, the finance ministers from all states make suggestions and are also included in the budget making process. She said that the regional imbalances are being addressed in the budget. The Finance Minister said that it was an unfounded allegation levelled by the opposition that there were more budgetary allocations to Bihar or other BJP-ruled states. 

Referring to devaluation of Indian Rupee against the US dollar, she said that the RBI is keeping watch on the volatility in the Indian Rupees. Giving figures, Ms Nirmala Sitharaman said that in the new tax regime and after the rebate of 12 lakh rupees on Income tax, there



will be considerable decrease of income tax across all slabs. She said that there is no entertainment tax levied by the Union government and entertainment tax previously levied by state governments has been subsumed under the GST. She said that levy of taxes on entertainment and amusement is by the local bodies-which is a state subject.

Earlier, participating in the discussion, BJP MP Darshana Singh said that this budget is the roadmap to Viksit Bharat-2047. She said that this budget has laid special focus on the welfare of women, and the farmers. She added that the budgetary allocation to the agriculture sector will definitely improve the economic conditions of the farmers across the country. She also praised the government for providing an income tax rebate of 12 lakh rupees to the taxpayers. Congress MP Imran Pratapgarhi while criticising the government said that budgetary allocation for MGNREGA has not been increased. He said that the budget doesn’t address the issue of inflation. He said that the budget of the Minority Affairs Ministry has been cut.

Speaking on the Budget, Minister of State for Social Justice Ramdas Athawale appreciated the Budget that sufficient allocations have been made to various welfare departments. Taking part in the discussion, former Prime Minister and senior JDS leader H D Deve Gowda said the Finance Minister made ample efforts to make sufficient allocations to all sections of the society. He requested the government to form Boards for development of Jackfruit and Jamun farmers to enable value addition on the lines of Makhana Board. Emphasising the need for linking of rivers, he raised concern over the water scarcity in Bengaluru city. 

He also requested the government to enhance employment opportunities in rural areas to prevent youth from migrating to urban areas. Dr Bhim Singh of the BJP said the budget will be a cornerstone of the Vikasit Bharat. He also said the budget will help eradicate poverty. Pradip Kumar Sharma Varma, Aditya Prasad of the BJP was among those who took part in the discussion. Several other members also spoke during the discussion.