Finance Minister Nirmala Sitharaman has firmly asserted that India's national security remains an absolute priority that cannot be compromised under any circumstances.

Speaking at the Youth Dialogue on Budget 2026 in New Delhi, she emphasised the government's unwavering commitment to defence preparedness amid competing national demands.

Sitharaman specifically referenced Operation Sindoor to illustrate the tangible outcomes of a decade-long surge in defence investments. This precision strike operation, conducted against terrorist infrastructure across the border, demonstrated the efficacy of modern equipment and sustained funding, enabling swift and decisive military action.

She recalled her tenure as Defence Minister, highlighting stark shortages in basic gear that once plagued the armed forces. Soldiers often went into the field with rifles but without adequate ammunition or bulletproof jackets, underscoring the precarious state of readiness in the past.

The minister pointed out the inherent tensions in fiscal policy-making, particularly the need to balance farmers' welfare with robust national security. Ensuring food production, fair procurement prices, and affordable consumer access requires careful subsidies, yet these must not detract from defence allocations.

"Conflicting demands" such as these, Sitharaman noted, pose the greatest challenge for any Finance Minister. Resources must be allocated judiciously to safeguard the nation while supporting agriculture and economic stability.

She dismissed blanket tax hikes as an easy fix for funding shortfalls, arguing that innovative borrowing and prioritisation are often necessary. 

During the height of the pandemic, Prime Minister Narendra Modi directed that no additional taxes be imposed on citizens despite the urgent need for vaccines. Whether domestically produced or imported, life-saving interventions proceeded without passing costs directly to the public.

Significant government borrowing filled the gap, enabling procurement and distribution without hesitation. This approach prioritised lives over immediate fiscal orthodoxy, a decision Sitharaman defended as essential.

With economic recovery evident in recent years, the focus has shifted decisively to debt reduction and fiscal consolidation. The government aims to repay borrowings promptly, alleviating future burdens on citizens and restoring macroeconomic balance.

Sitharaman's remarks come against the backdrop of Budget 2026 preparations, where defence outlays are expected to remain a cornerstone. Over the past decade, capital expenditure on defence has risen sharply, funding indigenous projects like TEJAS fighters, BrahMos missiles, and advanced surveillance systems.

Operation Sindoor, in particular, showcased integrated capabilities from drones, satellite intelligence, and precision munitions—fruits of investments under the Atmanirbhar Bharat initiative. This has reduced import dependence and bolstered operational autonomy.

Her address to the youth audience also served as a broader lesson in governance: prudent resource management ensures security without sacrificing welfare. As India navigates geopolitical tensions, such balanced strategies will define its trajectory.

Based On ANI Report