New Delhi | Finance Minister Nirmala Sitharaman on Monday said the Union Budget for FY27 has focussed on investment as a priority tool for boosting consumption, and the trajectory of fiscal deficit shows that the government's priority is growth.
Interacting with the media after the 2026-27 Budget presentation, Sitharaman also the volatility in gold prices is due to global uncertainty, and many central banks are investing in gold.
"It also shows that investors do not have confidence in any one particular currency. and hence the rush to buy gold," Sitharaman said.
Talking about hike in securities transaction tax (STT) on F&O trades, the minister said it is a "sort of deterrence so that people do not go headlong in speculative" derivative trading.
The Budget has proposed an increase in STT on futures contracts to 0.05 per cent from 0.02 per cent. STT on options premium and exercise of options are proposed to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively.
According to studies by Sebi, over 90 per cent of retail investors' trades in the F&O segment lead to losses, and the capital markets regulator has also taken steps to reduce volumes in the past.
"We have only touched the F&O trade which is highly speculative. I have received calls from many parents saying their children are severely losing money, and also seeking government intervention. The STT hike in F&O will act as a deterrence so that people do not go headlong with that," Sitharaman said.
Continuing on the path of fiscal consolidation, the Budget has pegged fiscal deficit at 4.3 per cent of GDP for the next fiscal year, as against 4.4 per cent for the financial year ending March 2026.
Sitharaman said the fiscal deficit target has to depend on each year's economic situation and in the past the government has pegged fiscal deficit a couple of basis points lower than the previous fiscal year.
This fiscal with the "government's priority being growth, I am comfortable with 4.3 per cent deficit target. We will see how it goes," Sitharaman said.
She also said the pace of disinvestment and asset monetisation will continue. The government will encourage more disinvestment of public sector companies. IDBI Bank strategic disinvestment on track, pace of PSU stake sale to set direction of non-tax revenues, Sitharaman said.
In October 2022, the government, together with LIC, had invited EoI (Expression of Interest) from investors for privatising IDBI Bank by selling a total of 60.72 per cent stake. This includes a 30.48 per cent stake of Government of India and 30.24 per cent of LIC.
DIPAM, in January 2023, received multiple EoIs for IDBI Bank. The prospective buyers of IDBI Bank have already been granted security clearance by the Ministry of Home Affairs and cleared fit and proper after evaluation by the Reserve Bank of India.
Sitharaman also expressed confidence that the recent higher private consumption, which was driven by GST rate cut and hike in Income Tax exemption limit in FY26 Budget, will sustain in coming months.