Budget Already Has Buffers To Tackle Oil, Monsoon Risks; No Revision Needed: FM Sitharaman

New Delhi, Jul 27 (KNN) Union Finance Minister Nirmala Sitharaman said the government does not see an immediate need to revise its Budget estimates, despite emerging risks from higher global oil prices, geopolitical tensions and an uneven monsoon.

Speaking at the NDTV Profit Business Leadership Awards 2026 in Mumbai, Sitharaman noted that adequate buffers had been built into the Budget to manage both domestic and external shocks.

“At this stage, I don’t think I look at my budget number for readjusting,” she said, responding to concerns over West Asia tensions and weather-related uncertainties.

Provision for Oil, Fertiliser and Supply Disruptions

The Finance Minister highlighted that the government has made provisions to absorb the impact of higher crude oil prices, rising fertiliser import costs and disruptions in global shipping.

“Similarly, for oil, support for import at a higher price for fertilizer import, but yet give it to the farmers at the same price since COVID. So, all this, I have kept buffers which can take care of it,” she added.

Inflation Risks Linked to Both Global and Domestic Factors

Sitharaman noted that inflationary pressures are not driven solely by external factors such as global commodity prices. Domestic factors, particularly rainfall patterns and agricultural output, also play a significant role.

“Inflation, therefore, cannot be just imported, it’s also our own want of rain and the monsoon being less than normal, can also add to the inflation,” she said.

The minister highlighted that a weak or uneven monsoon could affect crop production and food supplies, thereby adding to inflation. The impact of El Niño on rainfall variability was also cited as a key risk to irrigation and water availability.

Private Investment Showing Early Signs of Recovery

On domestic investment trends, Sitharaman noted that private-sector capital expenditure has begun to improve, with companies increasing investments in sectors aligned with India’s long-term development goals.

“Industry has started investing, the numbers are improving,” she said,  describing the trend as encouraging, particularly in areas critical to the government’s vision of ‘Atmanirbhar Viksit Bharat’. 

“I would certainly invite industry to engage with the government and see if there are any points of concern or any further facilitation that would be needed,” the finance minister added.

(KNN Bureau)