FM Sitharaman’s Budget 2026 Hint: ‘Customs is my next big cleanup assignment’ at HTLS 2025; Defends Rupee Fall

Sitharaman stated clearly, almost like jotting a note on her to-do list: “Customs is my next big cleaning up assignment.”⁵

This is massive. It strongly indicates that the Finance Minister is planning a major overhaul, potentially a wide-ranging set of reforms in the customs department to streamline trade, curb corruption, and accelerate ease of doing business at India’s ports and borders. Expect to see action on this front in the lead-up to, or possibly announced within, Budget 2026.

 The Rupee Debate: “Natural Level”

The Finance Minister had to address the elephant in the room: the steady depreciation of the Rupee, which hit an all-time low of{₹}90.43 just this week.

• Her Stance: She maintained that the rupee “will find its natural level.”

• The Defense: She acknowledged that while the BJP, when in the opposition, raised the issue of a falling rupee, the context then was different.⁶ Back then, the situation was “absolutely pathetic”—high inflation, a fragile economy. Today? The fundamentals of the Indian economy have improved.⁷ She argues that the currency debate must be “circumscribed by those realities,” essentially telling critics the currency move is happening from a position of strength, or nothing, unlike previous collapses.

 The Freebies Concern

Sitharaman also weighed in on the contentious issue of state governments doling out “freebies” ahead of elections.⁸

• Her Concern: She stated she is “concerned about the fact that the budget of these states will not be able to afford the freebies.”⁹

• The Action: The Centre is already talking to state ministries about how they can “restructure loans to manage“ the situation, especially since some states are taking out high-cost loans specifically to finance these schemes.¹⁰ Politics is competitive, sure, but debt restructuring is clearly the central government’s way of intervening to manage state fiscal health.

 Challenges Overcome

Sitharaman made sure to list the government’s major achievements and hurdles overcome, framing the present economic resilience against a backdrop of historic challenges:¹¹

• Managing growth after the COVID-19 pandemic.¹²

• Mitigating the impact of wars (like on foodgrains) and border troubles.¹³

• Successfully managing the massive spending related to a year of elections.¹⁴

• The economic restoration of Jammu and Kashmir following the Pahalgam terror attack and addressing issues with its banks.¹⁵

The summit, running under the theme “Transforming Tomorrow,” featured a huge lineup, including PM Narendra Modi and CJI Justice Surya Kant, which underscores the gravity of these statements.¹⁶

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