Budget Estimates Need No Revision as Fiscal Buffers Can Absorb Global Risks: FM Sitharaman

Union Finance Minister Nirmala Sitharaman has said that the government currently has no plans to revise the estimates presented in the Union Budget 2026–27, as sufficient fiscal provisions are available to manage emerging economic risks.

Speaking at the NDTV Profit Business Leadership Awards 2026 in Mumbai on July 26, the Finance Minister said the Budget contains adequate buffers to address the financial impact of geopolitical uncertainty, higher crude oil prices, costlier fertiliser imports and rising international freight expenses.

She noted that inflationary pressure may arise from both global and domestic conditions. External supply disruptions and elevated commodity prices could increase import costs, while an uneven monsoon, rainfall shortages and El Niño-related weather conditions may affect domestic production and prices.

According to Sitharaman, resources have been set aside to manage such pressures without requiring an immediate adjustment to the government’s fiscal projections. The provisions are also intended to help absorb higher fertiliser import costs while maintaining affordable supplies for farmers.

The Finance Minister further indicated that private-sector capital expenditure has begun to strengthen. Businesses are investing in strategically important industries that support the government’s objectives under the Atmanirbhar Bharat and Viksit Bharat programmes.

She invited industry representatives to engage with the government regarding regulatory concerns, operational challenges or additional facilitation required to accelerate investment.

Commenting on the broader economic environment, Sitharaman said India’s growth continues to remain resilient despite international uncertainties. GST revenue, export orders, e-way bill generation, electricity consumption, digital transactions and automobile and tractor sales were cited as indicators of sustained economic activity. CA Sansaar