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BS Manthan: Sitharaman flags fund utilisation gap, cautious on China FDIs

FM Sitharaman says political choices affect fund usage, defends calibrated disinvestment, and reiterates cautious stance on Chinese investment and BITs while backing domestic reforms

1 min read
Updated On: Feb 25 2026 | 2:10 PM IST
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Union Finance Minister Nirmala Sitharaman on Wednesday said the problem of budgeted expenditure remaining unused was often driven by political considerations at the state level, even as she defended the government’s approach to disinvestment, private sector participation, and scrutiny of Chinese investment.
 
Speaking at BS Manthan, Business Standard's flagship event in New Delhi, Sitharaman said India’s economic indicators were broadly aligned with the Budget’s projections, but challenges remained from global uncertainty and domestic implementation gaps.
 
Why is budgeted expenditure not fully utilised?
 
The finance minister pointed to the Centre’s special assistance scheme for capital investment by states as an example, where funds were available but uptake varied based on political factors.
  
“We've given this special assistance to states for capital investors, which is a 50 year money, given interest free. But in some reform related steps, not even one taker, or in some a few takers in some others, oh, everybody is in,” she said.
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First Published: Feb 25 2026 | 2:10 PM IST

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