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Finance Minister Nirmala Sitharaman, in an exclusive interview with ABP News, defended the Union Budget, describing it as a “futuristic budget” with a clear short, medium and long-term vision. Her remarks came amid questions over the absence of special provisions for election-bound states, expectations of further income tax relief and concerns around employment generation.

No Special Provisions For Poll-Bound States

Responding to a question on why no specific announcements were made for the five states heading into Assembly elections, unlike the makhana board announced ahead of Bihar polls, the Finance Minister said this was a matter of perspective, adding that the Budget should not be viewed through a narrow electoral lens.

She said the Budget includes several infrastructure and sector-specific initiatives that will benefit multiple states and sections of society. These include the announcement of a rare earth corridor for Kerala and Tamil Nadu, which is expected to generate employment, a fast-track train project for Chennai aimed at easing the daily commute, a coconut board for Kerala to support coconut farmers, and an east-west corridor for Bengal, along with benefits from national waterways and freight corridors.

“These initiatives benefit the aam aadmi, whether it is employment opportunities from rare earth corridors, income support for coconut farmers, or relief for passengers who suffer while travelling in overcrowded trains,” she said.

On Income Tax Relief Expectations

Addressing the absence of fresh income tax concessions in this year’s Budget, Sitharaman said the income tax exemption announced last year had a revenue implication of Rs 7.76 lakh crore, and the benefits of that decision will start reflecting from this year’s income tax return filings.

She said public expectations were understandable but added that it would not be prudent to announce further concessions before the impact of the previous relief has fully materialised. “Your expectation may be valid, but if I have not yet reaped the benefits of the concession already announced, how can I offer more this year?” she said.

Vision for 2047: Short, Medium and Long-Term Planning

Explaining how the Budget aligns with India’s long-term goals, the Finance Minister said there are three key markers guiding the vision for 2047. She described this as the first Budget of the second quarter of the 21st century, which must already reflect planning that extends up to 2050.

She said the 16th Finance Commission cycle will begin from April this year and emphasised that the Budget integrates short-term, medium-term and long-term objectives. Aatmanirbharta, she added, continues to remain a central pillar of the government’s economic strategy.

Manufacturing Push And MSME Focus

Sitharaman highlighted the government’s continued emphasis on strengthening manufacturing, particularly in sectors such as semiconductors and electronics. She said up to Rs 40,000 crore is being provided under the Production Linked Incentive (PLI) framework for sectors that can generate employment, have export potential and are capable of scaling up.

On micro, small and medium enterprises, she said MSMEs account for 40 per cent of India’s exports and are being strengthened through the ‘Champions out of MSMEs’ initiative. She noted that many MSMEs hesitate to grow bigger, and the government is making provisions for equity capital, liquidity support and professional assistance to help them scale up, which will have a positive impact over the medium to long term.

Employment Allocation Concerns

Responding to concerns over lower allocations for employment generation schemes, the Finance Minister clarified that Budget figures should not be interpreted as the final limit for the year.

She said this does not mean that the allocation mentioned in the Budget is all that will be spent over the year, explaining that supplementary demands for grants can be introduced in November or December if required, subject to Parliament’s approval. She added that this is why Budget Estimates often differ from Revised Estimates.