The move aims to strengthen urban financing and promote greater investment in local infrastructure. In her ninth consecutive Union Budget, Sitharaman also announced the restructuring of public sector financial institutions
Finance Minister Nirmala Sitharaman presents her ninth consecutive Budget. PIC/X
Finance Minister Nirmala Sitharaman on Sunday proposed incentives of Rs 100 crore for single bond issuance by municipal corporations with borrowings exceeding Rs 1,000 crore. The move aims to strengthen urban financing and promote greater investment in local infrastructure.
In her ninth consecutive Union Budget, Sitharaman also announced the restructuring of public sector financial institutions, including REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC), as part of efforts to bolster the government’s financial sector framework. She further proposed the formation of a high-level committee on “Banking for Viksit Bharat” to guide reforms in the sector.
Highlighting the strength of India’s banking system, the Finance Minister noted its robust balance sheets and historic high profitability. She also proposed a review of foreign exchange management rules concerning non-debt instruments. Sitharaman added that close to 25 crore people have emerged from multi-dimensional poverty, reflecting the impact of sustained reforms and economic growth.
Sitharaman termed the government’s reform agenda the “reform express”, asserting that it continues to maintain momentum under the Narendra Modi-led National Democratic Alliance (NDA). “Since we assumed office 12 years ago, the country’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices made even in times of uncertainty and disruptions,” she said.
Emphasising 'Aatmanirbharta (self-reliance)' as a guiding principle, the Finance Minister said the government has strengthened domestic manufacturing capacity, ensured energy security, and reduced critical import dependencies.
“Simultaneously, we have undertaken reforms to support employment generation, agricultural productivity, household purchasing power, and universal services. These measures have delivered a high growth rate of around 7 per cent and made substantial strides in poverty reduction,” she added.
Union Budget 2026: India to continue to take confident steps towards Viksit Bharat
Sitharaman said the government has consistently chosen decisive action over ambivalence, pursuing structural reforms, fiscal prudence, and monetary stability while maintaining a strong thrust on public investment.
"Our government has decisively and consistently chosen action over ambivalence, and we have pursued far-reaching structural reforms, fiscal prudence and monetary stability, while maintaining a strong thrust on public investment," Sitharaman added.
Referring to global challenges, Sitharaman said India is facing an external environment in which trade and multilateralism are under strain. She emphasised that India will continue to take confident steps towards Viksit Bharat by balancing ambition with inclusion.
(With PTI and ANI inputs)
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