National Security Cannot be Compromised: Nirmala Sitharaman in Post-Budget Dialogue

Union Finance Minister Nirmala Sitharaman on Sunday asserted that national security remains a non-negotiable priority for the government, while describing the management of “conflicting demands” as the most difficult challenge faced by any Finance Minister.

Speaking at the Youth Dialogue on Budget 2026, Sitharaman said India’s defence preparedness cannot be compromised under any circumstances. Referring to Operation Sindoor, she said sustained investment in defence over the past decade has strengthened the country’s military capabilities and delivered tangible results.

Recalling her tenure as Defence Minister, Sitharaman highlighted the shortcomings faced by the armed forces in earlier years, stating that there was a time when soldiers lacked even basic protective gear and adequate ammunition. She said the situation underscored the importance of consistent and long-term defence spending.

The Finance Minister stressed that fiscal policymaking involves balancing competing priorities, including national security, farmers’ welfare and consumer interests. She explained that while farmers must receive fair prices for their produce, those prices may not always align with market expectations, requiring government intervention through subsidies.

“There are conflicting demands, and managing those conflicting demands is the challenge every finance minister faces,” she said, emphasising that economic decision-making often requires careful trade-offs.

Sitharaman also noted that increasing taxes is not always a viable solution for raising resources, even though substantial funding is needed to meet national priorities. Reflecting on the fiscal pressures during the COVID-19 pandemic, she described the crisis as a “once-in-a-century” challenge.

Citizens Should Not Be Burdened

She said Prime Minister Narendra Modi had made it clear that citizens should not be burdened with additional taxes during the pandemic, despite the urgent need to procure vaccines, whether manufactured domestically or imported. She added that the government instead opted for increased borrowing to address the emergency.

The Finance Minister acknowledged that borrowing rose sharply during the crisis but said the approach was necessary to protect lives and livelihoods. She added that once the economy began showing clear signs of recovery and growth, the government shifted its focus towards reducing debt and restoring fiscal discipline to avoid placing a long-term burden on citizens.

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