Union Budget focused on inclusive development, will foster private investment: Sitharaman

Replying to the discussion on the Union Budget in the Rajya Sabha, Sitharaman said that the budget was prepared during a challenging time, with serious external challenges beyond estimates or forecasts.

"Despite this, we have tried to keep the assessment as accurate as possible, keeping India's interests paramount," she said.

She said the government has been strengthening cooperative federalism and working with transparency.

Sitharaman added that India's economy is projected to grow by 6.4 per cent in real terms and 9.7 per cent in nominal terms in 2025-26, according to the first advance estimates from the National Statistical Office (NSO).

"Though the grant in aid for creation of capital assets is accounted as revenue expenditure in the books of Union Government, yet they go to the states to create capital assets, so eventually it's capital expenditure," she said.

The Union Finance Minister informed the House that the effective capital expenditure in this Budget is projected at Rs 15.49 lakh crore as against Rs 13.18 lakh crore in the revised estimate of 2024-25, adding that there is no reduction in the expenditure.

Sitharaman said the government has not cut down on sectoral allocations.

She added that the government has allocated Rs 1.71 lakh crore to the agriculture and allied sector while Rs 2.67 lakh crore has been allocated to Rural Development. Allocation to Urban Development and transportation was Rs 6.45 lakh crore, Health & Education Rs 2.27 lakh crore, Defence excluding pension Rs 4.92 lakh crore.

The minister said that New Employment Generation Scheme announced in July Budget has three different schemes within it.

"One, which will take care of first time job seekers; second one is regarding job creation and manufacturing where employer is incentivised. Third one is to support employers," she said.

Sitharaman had replied to the debate on Union Budget in Lok Sabha on Tuesday (ANI)