Budget 2026: Govt's focus is on sustained push to growth via reforms, says FM Nirmala Sitharaman

Finance minister Nirmala Sitharaman said the government is giving a push to maintain the growth momentum in the economy through reforms.

“We are laying the path and giving a push to maintain the growth momentum. We want to ensure growth momentum and sustained economic growth. Primarily, we are looking at an ecosystem with structural reforms, which will go on. Reforms will continue with an aim of improving productivity and employment generation,” said Sitharaman addressing a press conference after presenting Budget 2026-27.

FM Sitharaman said the government will ensure use of technology for the benefit of the common man.

Capital expenditure will continue: FM Sitharaman

Sitharaman said the government’s post-Covid strategy of public capital expenditure will continue. “The advantage we gained since Covid with public capital expenditure will continue.  FY27 allocation of ₹12.2 lakh crore is 4.4% of the GDP. This is the highest in the last 10years,” said Sitharaman.  

“It could be higher even if you take the earlier data. Sustained capex allocation has not happened before. We will have dedicated freight corridors. I have highlighted twenty new national waterways,” she said.

Rare earth corridors will have multi-decade advantage for the Indian economy: FM

Finance minister Nirmala Sitharaman Sunday said rare earth corridors announced in the Budget will have a multi-decade advantage for the Indian economy. "A scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing," Sitharaman said during the budget presentation.

MSMEs won't face capital crunch: FM Sitharaman

FM Sitharaman said that with the funds announced in the Budget for small industries, the MSMEs will be given equity support, liquidity support, and professional support. MSMEs will not face any dearth of funds. “Recognising MSMEs as a vital engine of growth, I propose a three-pronged approach to help them grow as ‘Champions’: Equity Support 28. I propose to introduce a dedicated ₹10,000 crore SME Growth Fund to create future champions, incentivising enterprises based on select criteria. I also propose to top up the Self-Reliant India Fund set up in 2021, with ₹2,000 crore to continue support to micro enterprises and maintain their access to risk capital,” the FM said.

Govt's intent is to have a strong monetisation pipeline: DEA Secy Anuradha Thakur

On the disinvestment target of ₹80,000 crore for FY27, a lion’s share will come via asset monetisation. During the press conference, DEA secretary Anuradha Thakur said the government intends to have a strong asset monetisation pipeline. “Last year, it was announced that there will be a pipeline for monetisation and we will reap dividends,” Thakur said.

STT hike applicable only to the F&O segment: Revenue Secretary Arvind Shrivastava

FM Sitharaman proposed to raise the STT on futures to 0.05% from the current 0.02%. “STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively,” she said.

“The only change made in the STT is in F&O. All the other STT rates remain the same. The primary objective of raising the tax rate on STT is that the volumes of F&O in comparison with the size of the GDP or the size of the underlying equity markets, it is largely in the realm of speculation. It is meant to handle the systemic risk in the equity market,” said revenue secretary Arvind Shrivastava.