STT hike aimed at curbing speculation, not revenue generation
Speaking about the market’s initial 1,500-point drop post-budget, Sitharaman emphasized that the STT correction was “much needed” to protect retail investors. “We have had people calling us saying people are losing money heavily,” she stated, adding that the measure was designed to deter speculative trading rather than boost government revenues.
The Finance Minister noted that Hindi newspapers had reported extensive ‘satta’ (gambling) operations in the F&O segment. She clarified that the STT hike was selective, targeting only futures and options while leaving other securities untouched.
Markets rebounded sharply the following day, gaining approximately 2,400 points. Sitharaman attributed the recovery to multiple factors, including her team’s clarifications and positive sentiment around potential investment inflows and the Indo-US trade deal.
FM rebuts opposition claims on health, education spending
Addressing opposition criticism about reduced allocations for health and education as a percentage of overall budget, Sitharaman challenged critics to read the budget documents more carefully. She highlighted several initiatives that weren’t mentioned in her speech, including:
| Sector | Key Initiatives |
| Healthcare | Allied health service workers, medical hubs, tertiary sector workers, animal husbandry, veterinary services, testing labs, fisheries support, three new All India Institutes for Ayurvedic treatment |
| Education | Standing committee for education-skilling-entrepreneurship integration, five educational hubs planned |
“Budget-to-budget, nothing has come down,” the Finance Minister asserted, challenging opposition members to compare year-on-year figures rather than percentages.
Government targets 50% debt-to-GDP ratio by 2030-31
Responding to Congress MP Manish Tewari’s criticism about high debt levels, Sitharaman outlined the government’s commitment to fiscal consolidation. She announced plans to bring the central government’s debt down to 50% of GDP (plus or minus one percentage point) by 2030-31.The FM revealed that her ministry is working with several state governments to restructure their debt, helping them reduce the burden of high-cost loans. “Some chief ministers have appreciated this step, and they don’t belong to my party,” she noted, though she declined to name specific states.
She acknowledged Tewari’s research-based approach to policy critique while pointing to Punjab’s debt situation as an example of state-level fiscal challenges.
Election-bound states receive infrastructure push
Addressing criticism about lack of announcements for poll-bound states, Sitharaman detailed several major projects allocated to states heading to elections:
Kerala and Tamil Nadu: Rare earth corridor, high-speed rail to Chennai, coconut promotion program with replacement saplings for aged trees
West Bengal: East-West corridor from Durgapur to Dankuni (a project announced but not implemented by Mamata Banerjee during her tenure as Railway Minister)
The Finance Minister emphasized that the budget covered all states, whether election-bound or not, noting that it was impossible to mention every state in a 90-minute speech.
₹1.25 lakh crore total allocation for rural employment
Sitharaman revealed that beyond the ₹95,000 crore allocated for the renamed MGNREGA (now Garib Kalyan Rojgar Guarantee Yojana), the government has provided an additional ₹30,000 crore to clear pending dues to states, bringing the total rural employment allocation to ₹1.25 lakh crore.
“Protesters of Garib Kalyan Rojgar Guarantee will never acknowledge this,” she noted, adding that critics often create perceptions without reading the detailed budget documents.
Gen Z inputs shape Budget priorities
In a lighter moment, the Finance Minister discussed her enthusiastic engagement with young people, revealing that budget inputs came from students through the MY Bharat platform. She had invited 30-33 first and second-year college students from across India to watch the budget presentation from the gallery and interact with her afterward.
“By 2047, India should be something they will be proud of being an Indian citizen,” Sitharaman said, explaining the youth-focused orientation of budget planning.
Handloom promotion through ‘saree diplomacy’
When asked about her strategic saree choices for budget day, the Finance Minister confirmed she deliberately uses the platform to promote Indian handlooms. This year’s Kanjivaram ahead of Tamil Nadu elections follows last year’s Madhubani before Bihar polls and a Karnataka weave before elections there.
“I only wear handlooms, budget or no budget. I do not wear machine-made,” she stated, adding that while she appreciates conversations about her sarees, she wants equal focus on her policy work—a concern she said applies to all ministers regardless of gender.
FM open to Opposition Budget discussions
Responding to parliamentary gridlock over budget discussions, Sitharaman expressed willingness to engage with opposition members outside the house. “I do not mind calling them and saying you want to talk,” she said, comparing it to her successful youth outreach sessions.
She emphasized that much of the budget content wasn’t covered in her 90-minute speech, urging critics to examine the detailed documents before questioning. “Please go into the details and then question me, I will be happy to answer,” the Finance Minister concluded.
Key Takeaways
• STT hike on F&O designed to protect 90% of retail traders losing money, not for revenue
• Government targeting 50% debt-to-GDP ratio by 2030-31
• ₹1.25 lakh crore total allocation for rural employment including arrears clearance
• Major infrastructure projects announced for all election-bound states
• Youth inputs from MY Bharat platform incorporated into budget planning
• Finance Minister open to detailed budget discussions with opposition outside parliament