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Sitharaman said that the government plans over ₹16 lakh crore for capex to the public sector undertakings (PSUs) in fiscal 2026, adding that to think the government’s emphasis has shifted from capex to consumption is not right.
“It is true that we have enhanced the capex and simultaneously given some concessions through reduction in taxes in personal income tax for people who would want to spend, save or invest,” Sitharaman said, adding that PM Modi readily agreed to give relief up to ₹12 lakh to taxpayers and now it is up to consumers to spend or invest their money however they want to.
Also Read: Inflation nears RBI’s target as food prices ease, says Finance Minister Nirmala Sitharaman
She said that capital asset building has also got similar provisions as much as tax reliefs. “And that is why today we are able to say that the picture shows that we are shifting the emphasis for consumption boosting rather than cap asset building which has been the feature all this while. No, capital asset building has also got that much provision as much as respecting the taxpayers and giving them some kind of a relief so that whether they want to spend it, save it or invest, it is up to them,” she said.
The government has also allocated over
₹1 lakh crore to private R&D agencies and is pushing for reforms to enhance manufacturing, ease compliance, and improve social infrastructure. Sitharaman noted that reforms in manufacturing, ease of doing business, and infrastructure would continue to drive progress. “Whether it is through manufacturing through the PLI, or removing the stress of compliance on businesses, I expect seeing the advantage that such a thing gives, even the states would come forward to remove such stressful compliance related regulations,” she added.
FM informed that reform policies are being formulated for boosting manufacturing, ease of doing business, to ensure social infrastructure is ready so that people do not have to run around to get their basics. “The reform momentum shall continue. Newer areas are also being opened up,” she said. “We are signing MoUs with many countries for imports of minerals. Critical 224 minerals are exempted from duties so that industry can get it at an affordable price,” FM added.
The Finance Minister expressed optimism about attracting more foreign direct investment (FDI) in the insurance sector, emphasising the importance of protecting citizens’ interests with regulatory guardrails. Furthermore, the government is launching a scheme to increase agricultural productivity in 100 rural districts with low output.
On the Income Tax bill, Sitharaman said, “We have completely shaken up the IT ACT. There is a 31 member select committee which will invite comments on the new IT Bill.”
She said that the government had more than 60,000 inputs for the making of the new bill and wanted to “involve in everything that you do” emphasising that the IT bill review is based on Jan-Bhagidari (people’s contribution), adding that the IT Act is essentially looking at simplification, in language and in sections. “Old bill has over 800 sections which are now being brought down to 500. It should not lead to too many interrogations that everyone goes to the court,” she added.
“Involve everyone…,” Sitharaman said to the industry stakeholders. She said that the Finance Ministry has adopted greater coherence, and rich dividends have been paid. She emphasised on bringing out FAQs for everything that the industry does, as that will provide clarity for the public for the initial phases of the new developments.
Sitharaman also discussed the Fiscal Deficit goal, stating that the government is on track to meet the target of under 4.5% next year, with debt-to-GDP ratio expected to drop to around 50%. “Every measure will be taken to bring down debt, we need to have a country responsibly run,” she remarked.