Budget has buffers to tackle global risks, no need to revisit its budget estimates yet: FM Sitharaman
Mumbai, July 26
Union Finance Minister Nirmala Sitharaman on Sunday said the government does not see a need to revisit its Budget estimates despite renewed geopolitical tensions and weather-related risks, asserting that adequate fiscal buffers have been created to deal with global uncertainties.
Speaking at the NDTV Profit Business Leadership Awards 2026 in Mumbai, Sitharaman said the government had made provisions to absorb the impact of rising oil prices, fertiliser imports and increased shipping costs arising from global developments.
"At this stage, I don't think I look at my budget number for readjusting," the Finance Minister said when asked whether renewed tensions in West Asia and an uneven monsoon would affect the government's fiscal calculations.
She said inflationary pressures could stem from both external and domestic factors.
"Inflation, therefore, cannot be just imported, it's also our own want of rain and the monsoon being less than normal, can also add to the inflation," she said during the interaction, referring to supply disruptions, higher fertilizer costs and the impact of El Nino on rainfall.
The Finance Minister said the Budget has adequate provisions to address such challenges.
"We've made a provision, there's some resource kept aside for it... Similarly, for oil, support for import at a higher price for fertilizer import, but yet give it to the farmers at the same price since COVID. So, all this, I have kept buffers which can take care of it," she said.
On private investment, the Finance Minister said industry investment has started improving and invited businesses to work closely with the government.
"Industry has started investing, the numbers are improving. In fact, it's very encouraging to know that they are investing in sectors which are very critical to India's Atmanirbhar Viksit Bharat," she said, adding, "I would certainly invite industry to engage with the government and see if there are any points of concern or any further facilitation that would be needed."
Earlier, addressing the event, Sitharaman said India's economy continues to demonstrate resilience despite global challenges.
"India's growth momentum remains broad-based and resilient despite external challenges," she said, adding that indicators such as GST collections, export orders, e-way bill generation, electricity demand, digital payments, and vehicle and tractor sales continue to point to sustained growth.
— ANI
Reader Comments
Good to hear the FM is on top of global risks. But the real test will be if inflation stays in check for common people like us. GST collections going up is a good sign, but we need to see how it translates to lower prices at the local kirana store.
Finally some clarity from the Finance Minister. The buffers for fertilizer and oil are crucial given West Asia tensions. Industry investment picking up in critical sectors is exactly what we need for Viksit Bharat. But why is the private sector still hesitant? More facilitation needed, maybe?
The FM's confidence is admirable, but let's be real—El Nino and a bad monsoon could really hit our agricultural heartland. Keeping fertilizer prices same since COVID is good for farmers, but what about the rest of the supply chain? Hope the buffers are truly enough. 🤞
As a middle-class household, I'm relieved the FM isn't panicking about global risks. The mention of digital payments and e-way bills is reassuring—shows the economy is moving. But I wish she'd also talk about job creation in the Budget. Buffers are fine, but jobs are the real need today.
Impressive that India's economy remains resilient despite global headwinds. The FM's invitation to industry for engagement is a smart move. But I do worry about the uneven monsoon—our farmers have been through so much. Hope the government's provisions are enough to prevent distress. 🙏
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