FM Sitharaman on India Post transformation plan: 'Need to revive the connect with people'

We want to revive the connect that India Post has with the people, said the FM.

Shortly after presenting her eighth consecutive Union Budget, Finance Minister Nirmala Sitharaman highlighted the evolving role of daksewaks or postal workers in villages and the emerging need to optimise the existing India post network.

"Even today, daksewaks in the villages are performing multiple roles - from selling insurance to running small payment banks. There is a huge network of daksewaks across the country," she said, in an interview with Doordarshan.

Finance Minister Nirmala Sitharaman on Saturday announced the government's plan to transform India Post into a major public logistics organisation, leveraging its vast network of 1.5 lakh rural post offices to strengthen the rural economy.

Underscoring the need to modernise and optimise India Post’s services, she added, "If we fail to optimally use them, it can fall into bad days. Postmen were the connect for us... we want to revive the connect that India Post has with the people, make them nerve centres for India's growth. Moreover, we want them to take up the logistics function."

Sitharaman further announced that the Centre will provide financial support to the National Cooperative Development Corporation to enhance lending operations in rural areas, reinforcing the government's commitment to strengthening the rural economy.

FM Sitharaman presented the Union Budget for fiscal 2025-26 on Saturday, which proposes an expenditure of Rs 50,65,345 crore. This marks a 7.4% increase compared to the current fiscal year. The revised expenditure estimate for 2024-25 is Rs 47.16 lakh crore.

According to the Budget documents, Rs 5,41,850.21 crore has been earmarked for centrally sponsored schemes for the upcoming fiscal year starting April 1, 2025. This is a significant rise from the Rs 4,15,356.25 crore allocated for the current financial year.

For central sector schemes, an allocation of Rs 16.29 lakh crore has been made for FY 2025-26, compared to Rs 15.13 lakh crore in FY 2024-25.

The increase in expenditure for 2025-26 is attributed to several factors, including a rise in payments for interest on market loans, treasury bills, external loans, small savings, and provident funds. Additionally, there is a higher allocation for the Armed Forces, particularly for capital expenditure, as well as increased provisions for employment generation schemes.