New Delhi: Finance minister Nirmala Sitharaman on Thursday defended the National Democratic Alliance government’s economic record and the FY27 Union budget, contending that India has delivered a rare mix of strong growth, price stability and improved spending efficiency in public schemes.
Replying to the budget debate in the Rajya Sabha, Sitharaman said the budget aims to lock in macroeconomic gains, strengthen domestic manufacturing and human capital, and extend India’s growth trajectory into the next decade.
The minister highlighted India’s projected 7.4% GDP growth in FY26 and benign inflation. “This is the combination I am talking about—strong growth and price stability—uncommon globally,” Sitharaman said, adding that such performance reflects the strength of economic fundamentals and the contribution of its citizens.
The minister said self-reliance remains a central principle in the government’s economic strategy, especially in strengthening domestic manufacturing and energy security.
As part of its manufacturing push, the government has taken steps to boost production in 10 key sectors, including biopharmaceuticals, semiconductors, rare earths, capital goods, container manufacturing, sports goods and textiles, Sitharaman said. Customs duty exemptions will support the domestic industry while the proposed integrated east coast industrial corridor will improve connectivity and industrialization in the eastern region, she said.
Sitharaman assured the house that the Centre has not slashed funds to any state or scheme, but has put in place an efficient system that allows tracking of funds, and its usage, for efficient public expenditure management that is focused on outcomes.
During the debate on the budget, on 9 February, former finance minister and Congress party leader P. Chidambaram had said that the budgetary allocations for agriculture, rural roads and rural development had seen a reduction.
Sitharaman had earlier said success was often measured by how much money was pushed out of the treasury, regardless of whether it was actually spent, leading to large sums lying idle in bank accounts of implementing agencies and creating excess liquidity in the banking system.
The minister said reforms through the Public Finance Management System and the single nodal agency framework have provided real-time visibility of fund flows, enabling the government to release money “just in time” based on actual requirements on the ground.
“We do not blindly release more funds just because we need to book expenditure,” Sitharaman said, asserting that there is no denial or stoppage of funds to any state or scheme.
Sitharaman reiterated the government’s commitment to fiscal discipline and said excessive borrowing was not an option. “The government cannot borrow excessively. That is the principle we follow,” the minister said, questioning the opposition for demanding higher spending while also raising concern over debt.
The minister highlighted the leakage prevented through the direct benefit transfer system, stating that ₹4.3 lakh crore had been saved since 2014, ensuring that benefits reach the intended beneficiaries.
The finance minister said job creation had been given prominence in the budget; this included the creator economy that calls for multiple skills.
On the financial sector, a high-level banking committee on ‘Viksit Bharat’ will review the sector to align it with India’s next phase of economic growth, the minister said, highlighting her budget announcement.
She also called upon states to participate actively in the implementation of the schemes announced in the budget, adding that many initiatives would operate in a challenge mode and that states have to come forward with detailed plans to qualify for support.
The two houses of Parliament will separately take up the Finance Bill, 2026, comprising tax proposals, for passage later in the session.