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Finance Minister says budget prioritize investments to boost consumption
Feb-03-2026

The Finance Minister Nirmala Sitharaman has said that the Union Budget 2026-27 prioritized investments in order to boost consumption, and the trajectory of fiscal deficit shows that the government’s priority is growth. Further, the Budget has pegged fiscal deficit at 4.3% of GDP for the next fiscal year, as against 4.4% for the financial year ending March 2026, continuing the path of fiscal consolidation. She noted that the fiscal deficit target has to depend on each year’s economic situation and in the past the government has pegged fiscal deficit a couple of basis points lower than the previous fiscal year. 

Meanwhile, she has defended hike in securities transaction tax (STT) on F&O trades saying the hike will act as a deterrence so that people do not go headlong in speculative. The Budget has proposed an increase in STT on futures contracts to 0.05% from 0.02%. STT on options premium and exercise of options are proposed to be raised to 0.15% from the present rate of 0.1% and 0.125%, respectively. Further, the minister talked about volatile gold prices, she said that volatility in gold prices is due to global uncertainty, and many central banks are investing in gold. She added that investors rushing to buy gold shows, they do not have confidence in any one particular currency. 

The minister also said that the pace of disinvestment and asset monetisation will continue. The government will encourage more disinvestment of public sector companies. She added that IDBI Bank strategic disinvestment on track, pace of PSU stake sale to set direction of non-tax revenues. Meanwhile, she expressed confidence that the recent higher private consumption, which was driven by GST rate cut and hike in Income Tax exemption limit in FY26 Budget, will sustain in coming months.
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