New Finance Commission Cycle Reshaping Expenditure Priorities: FM Nirmala Sitharaman

Why has the Budget projected lower or modest increases in several revenue expenditure heads? Finance Minister Nirmala Sitharaman says it is not because of economic stress, but due to a fresh, systematic reassessment of government schemes. Speaking at the NDTV Profit Conclave, she explained that India is entering a new Finance Commission cycle, prompting a review of how central and state schemes are funded. Many allocations, she said, now follow a near zero-based budgeting approach, starting with conservative estimates that can be increased if required. She also pointed to falling subsidies as a key factor changing the expenditure mix. Her message, the Budget reflects smarter prioritisation, not spending cuts.