After LS speech, FM Sitharaman likely to reply to Budget discussion in Rajya Sabha today

Nirmala Sitharaman

Union finance minister Nirmala Sitharaman is expected to reply to the discussion on the Union Budget in Rajya Sabha today, a day after her address in the lower house.

As she spoke in the Lok Sabha on Wednesday, the union finance minister highlighted that the effective capital expenditure for the financial year 2026-27, including that for states and union territories, is Rs 17.1 lakh crore, which is 4.4% of the gross domestic product (GDP) and this will give a push to the goal of Viksit Bharat.

She also outlined various government initiatives, including skilling and infrastructure investment.

The Budget 2026 has increased public capex from Rs 11.2 lakh crore in BE 2025-26 to Rs 12.2 lakh crore in FY2026-27. Sitharaman said that taken together with the provisions for states and union territories, the effective capital expenditure is Rs 17.1 lakh crore.

She also assured that a 41% share of taxes is devolved to the states, and said, "We have transferred 41% of the divisible pool to the states. No state's share has been reduced."

The FM cited the 16th Finance Commission and said it had analysed the devolution of funds from 2018 to 2023 and concluded that the Centre's transfers to states during each of those years exactly matched the Commission's recommendations.

"The 16th Finance Commission analysed the state's share transferred by the Centre to the states from 2018 to 2023 and concluded that in each of these years, the devolution made by the Centre exactly matches the recommendation of the Finance Commission," Sitharaman said.

"On the recommendation of state finance ministers, capital expenditure loans for 50 years are increased to Rs 2 lakh crore for special assistance to states for capital investment. While the Centre's capex stands at Rs 12 lakh crore, in effect, with states and UTs, it rises to Rs 17.1 lakh crore," the finance minister said.

Attack on the Opposition

During her speech, FM Sitharaman also launched a blistering attack on leader of opposition Rahul Gandhi, saying that it was the Congress-led UPA government which surrendered India's interest before international organisations including the World Trade Organisation (WTO) and "sold" the interest of poor and farmers.

She said it was the Congress which not only sold the interest of the poor and farmer of this country but the country itself.

She further said that Prime Minister Narendra Modi will always act in India's interest whereas it was the Congress which surrendered before WTO, sold poor, farmers during its regime when it signed the Bali agreement in 2013 which had two main pillars-- Trade Facilitation Agreement (TFA), Public Stockholding (Food Security).

Her remarks came after Rahul Gandhi, during his speech in Parliament, accused the Centre of compromising national interests as he spoke on the India-US interim trade deal. He alleged that the central government has effectively “sold Bharat Mata”.

The finance minister, meanwhile, also came down heavily on TMC supremo Mamata Banerjee and her party, saying there is no law and order in West Bengal, and a "bomb culture" prevails there.

Highlighting deteoriating law and order in the state, she said, "Bengal mein bomb chalta hai, kanun nahi chalta (in Bengal, it is bombs that prevail, not the law)", leading to uproar by Opposition benches.