Finance Minister Nirmala Sitharaman, speaking to students after the presentation of the Union Budget 2026–27, shed light on the detailed process behind the preparation of the country’s most important financial document. During the interaction, she underlined that while welfare and development remain key priorities, national defence is one area where no compromise can be made.
Explaining how the Budget is formulated, the Finance Minister said the process involves extensive consultations with a wide range of stakeholders, including multiple government departments, central ministries, and finance ministers of various states. These discussions are aimed at understanding the needs of different sectors, the aspirations of citizens, and the broader requirements of the economy.
According to Sitharaman, one of the core objectives of the government while framing the Budget is to ensure that public spending “reaches the last mile” and benefits those who need it the most.
“It is necessary to ensure that the minimum support system for those in desperate need is met. At the same time, not all resources can be spent there; you also need to physically build the country,” she said during the interaction, which was televised by DD News on Sunday.
Highlighting the importance of balanced spending, the Finance Minister pointed out that the country needs sustained investment in infrastructure, village roads, hospitals and quality education to support long-term growth.
She further stressed that national security remains paramount, drawing attention to the lessons learned over the past decade. “Above all, national defence cannot be compromised. Operation Sindoor showed how defence spending over the last 10 years has helped,” Sitharaman said.
Recalling her tenure handling defence-related responsibilities, she noted that earlier there were serious gaps in military preparedness. “I remember that when I was in defence, bulletproof jackets were not available for soldiers. They had guns, but not enough ammunition. A gun alone is not enough—firepower matters,” she said, emphasising the importance of sustained investment and clear priority-setting.
Summing up the government’s approach, Sitharaman said the challenge lies in striking the right balance—ensuring the nation’s security, supporting farmers so they can produce adequately, and guaranteeing that their produce is procured at reasonable prices.
Reflecting this priority, the government has allocated ₹7.84 lakh crore for defence in the FY27 Budget, marking a 15% increase over the ₹6.81 lakh crore provided in the previous financial year. The enhanced outlay underlines the government’s continued focus on strengthening India’s defence capabilities while simultaneously investing in development and welfare.