Union Budget 2026: Finance Minister Nirmala Sitharaman, while speaking to college students after the presentation of her ninth budget, detailed how she prioritises allocation annually. She said that while she would like to maintain the balance, it is tougher than it looks. The finance minister elaborated that she needs to take into account many factors before preparing the document, including the defence of the country, which cannot be compromised on.
Talking about maintaining a sense of balance in the budget at the Youth Dialogue on Budget 2026, FM Sitharaman said, “It is a very difficult job. I am not sure if I have but I have tried to every year. Balancing is a very difficult thing. On one hand you want to ensure that the minimum support system that the government has to provide for those who are in desperate need is met but yet not all money can go for that. You need to build the country physically, you need the infrastructure, you need the village roads, you need the hospitals, you also need good schools and so on.”
“Above all, the country’s defence cannot be compromised with. So Operation Sindoor actually told you what kind of money spent in the last 10 years has come to help. I know when I was in defence, bulletproof jackets were not available for our soldiers. They would have a gun in their hand but they didn’t have the bullet that goes into it. A gun alone doesn’t matter, you need the firepower. So, in that sense you are looking at priorities,” she said.
FM Sitharaman set aside Rs 7,84,678 crore as defence outlay in the Budget 2026, a steep hike of 15 per cent over last year’s allocation of Rs 6.81 lakh crore. This renewed push comes against the backdrop of Operation Sindoor against Pakistan and security challenges from China.
Sitharaman said that one would want the country to be secure and also the farmers to produce enough as well as someone to buy those produce from them at a reasonable price. “That price might not be suitable for the market and consumers might want some subsidies,” she said.
“There are conflicting demands and managing the conflicting demands is the problem,” she told the college students, adding that even though the country needs money, the government cannot just get up and start taxing everybody.
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