Finance Minister Outlines Vision for Capital Investment in 2025-26 Budget

Finance Minister Nirmala Sitharaman stated that almost all borrowed resources will be used for capital expenditure in 2025-26, with an outlay of Rs 15.48 lakh crore. The budget seeks to boost growth, inclusive development, and private investments. Discussions also touched on currency depreciation and opposition critiques.

Finance Minister Nirmala Sitharaman, addressing the Lok Sabha, highlighted the government's commitment to robust capital investments in the 2025-26 fiscal year. Nearly all borrowed resources are being directed towards effective capital expenditure, with a projected outlay of Rs 15.48 lakh crore, up from Rs 13.18 lakh crore in the previous year.

This capital expenditure represents 4.3% of GDP, aligning closely with the fiscal deficit target of 4.4%. Sitharaman explained the distinction between revenue and effective capital expenditure, emphasizing that borrowed resources are primarily allocated for creating substantial capital assets, not revenue expenditure.

On currency concerns, she noted India's rupee depreciated by about 3.1% compared to larger depreciations in other currencies. Responding to opposition on employment and savings, Sitharaman stated improved labor force participation and inflation within target ranges. Critiques of policy in West Bengal highlighted ongoing tensions. The budget promotes inclusive growth and fiscal management, balancing national development and financial priorities.