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4 min readNew DelhiMar 25, 2026 04:07 PM IST
Hitting out at the Congress party for “giving lectures” on fiscal deficit, Union Finance Minister Nirmala Sitharaman Wednesday contrasted the NDA government’s track record with that of its predecessor and said the Modi government has been repaying loans raised through oil marketing bonds during the UPA government.
Replying to the debate on the Finance Bill, 2026, Sitharaman also attacked the TMC and DMK, the ruling parties in poll-bound West Bengal and Tamil Nadu, on various issues, and complained that members of these two parties usually do not remain present in the House during her reply.
Responding to Congress member Deepender Singh Hooda, Sitharman said, “At the time of chhota sa (small) global financial crisis, the then UPA government was shaken up. While during COVID, a global crisis, we had retained a sense of calm… The fiscal deficit of 9.3 per cent (during the COVID year) has been brought down. They could not withstand the global financial crisis, which had a limited impact on the Indian economy. We managed even during COVID.”
“I want to put it on record, the actual fiscal deficit during 2008-09 would have been 7.9 per cent, but they whitewashed their books by booking their loans in the books of oil marketing companies and showed the fiscal deficit at 6.1 per cent. This was wrong. Actually, the fiscal deficit was 7.9 per cent. Whatever amount they raised from the market, they showed it in the books of oil marketing companies to keep their fiscal deficit number better. We do not do this,” Sitharaman said.
“Till today, the NDA government headed by Prime Minister Narendra Modi has been repaying, with interest, the loan raised through those oil bonds. They enjoyed putting the burden intergenerationally and we are bearing the cost of loans. We inherited a total outstanding debt of Rs 1.3 lakh crore from their oil marketing bonds. From 2014 to 2024, our government has returned Rs 1.43 lakh crore, including Rs 44,650 crore in principal. That is why there is a shortfall of that amount in our records for developmental activities like hospitals and schools. Where did the money go? It went to repay their loans. They are giving us lectures on fiscal deficit after keeping the fiscal deficit so bad during their time,” she said.
Referring to Congress member Manish Tewari’s criticism of the government over rising debt, Sitharaman said, “To speak of debt in nominal terms, without a correlation with the GDP, will make no sense. India’s nominal GDP rose from Rs 113 lakh crore to Rs 345 lakh crore, and debt, which Manish Tewari is saying that it has risen from Rs 56.5 lakh crore in 2013-2014 to Rs 214.8 lakh crore in 2025-26, but he should take into cognizance that the nominal GDP has seen such growth and has gone to Rs 345 lakh crore.”
The finance minister said that the Centre alone cannot be responsible for debt. “Manish Tewari should spend some time with his chief ministers in Himachal Pradesh and Karnataka and help them in bringing down debt…,” she added.
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Referring to TMC member Sougata Ray’s remarks regarding “distributive justice”, Sitharaman said the Trinamool Congress government in Bengal did not implement the Pradhan Mantri Cha Shramik Protsahan Yojana, while the implementation of the PM-Kisan was delayed for two years.
Attacking the DMK, Sitharaman said the party should firm up a view about the Centre’s Production Linked Incentive (PLI) scheme and should not just criticise for the sake of criticism. She alleged that the Tamil Nadu Chief Minister has spoken against the Women’s Reservation Bill. She further said that the Centre’s GST reforms 2.0 have benefitted Tamil Nadu, as collections have increased.
Later, the House passed the Finance Bill, 2026, by voice vote, negating amendments moved by Opposition members. The House approved the official amendments moved by the Finance Minister.
Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More
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