Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) proposed an incentive of ₹100 crore for single bond issuances worth more than ₹1,000 crore by municipal corporations. Union Budget 2026 Live: Nirmala Sitharaman projected to reduce fiscal deficit to 4. 3% of GDP for 2026-27 She also announced restructuring of REC Limited (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC) as part of the government’s strengthening of public sector financial institution.

The Minister proposed to set up a high-level committee on ‘Banking for a Developed India’. He said the country’s banking sector is characterized by strong balance sheet, historically high profitability.

In his budget speech, he proposed to review the foreign exchange management non-debt instrument rules. He said that about 25 crore people have come out of multidimensional poverty.