Metro India News | NEW DELHI 

Finance Minister Nirmala Sitharaman on Monday said the Union Budget for FY27 places investment at the centre of the government’s growth strategy, with the fiscal deficit trajectory underlining the priority accorded to economic expansion.

Speaking to the media after presenting the 2026–27 Budget, Sitharaman said higher investment would help boost consumption and sustain momentum in the economy. She added that the fiscal deficit target reflects a careful balance between growth and fiscal consolidation.

Commenting on the recent volatility in gold prices, the finance minister said global uncertainty has prompted many central banks to increase their gold holdings. This trend, she noted, also reflects declining investor confidence in any single currency, leading to a greater rush towards gold as a safe asset.

On the increase in securities transaction tax (STT) on futures and options (F&O) trades, Sitharaman described the move as a deterrent against excessive speculative activity. The Budget has proposed raising STT on futures contracts to 0.05 per cent from 0.02 per cent, while STT on options premium and exercise of options is set to increase to 0.15 per cent from 0.1 per cent and 0.125 per cent, respectively.

Citing studies by the Securities and Exchange Board of India, she said more than 90 per cent of retail investors incur losses in F&O trading. She added that the government has received concerns from parents about children suffering heavy losses in speculative trades, and the STT hike is aimed at discouraging reckless participation in this segment.

On fiscal consolidation, Sitharaman said the Budget has pegged the fiscal deficit at 4.3 per cent of GDP for the next financial year, marginally lower than the revised estimate of 4.4 per cent for FY26. She noted that deficit targets are calibrated annually based on economic conditions and said she was comfortable with the 4.3 per cent target given the government’s growth priorities.

The finance minister also said the government will continue with disinvestment and asset monetisation plans, with a renewed push for public sector stake sales. She said the strategic disinvestment of IDBI Bank is progressing as planned and that the pace of PSU stake sales will help shape non-tax revenue mobilisation.

She recalled that in October 2022, the government and LIC invited expressions of interest for privatising IDBI Bank through the sale of a combined 60.72 per cent stake. Multiple bids were received in January 2023, and prospective buyers have since received security clearance from the Ministry of Home Affairs and fit-and-proper approval from the Reserve Bank of India.

Sitharaman also expressed confidence that the recent uptick in private consumption, driven by GST rate cuts and the higher income tax exemption limit announced in the FY26 Budget, will continue in the coming months.