Union Finance Minister Nirmala Sitharaman on Thursday defended the Union Budget 2025.

Coming out as a response to the opposition claims that the Budget favoured Bharatiya Janata Party (BJP)-ruled states, especially poll-bound Bihar, she said no state had been neglected under Prime Minister Narendra Modi’s leadership.

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Speaking in the Rajya Sabha, the finance minister called such claims unfounded.

She also talked about the falling Rupee and said, “we believe overvalued currencies erode national competitiveness as exports become expensive.”

The minister said currencies of several advanced and emerging economies had also faced significant depreciation.

“G10 currencies depreciated by over 5.5% during October 2021 to January 2025. Major Asian currencies, too, weakened during this period. I want to allay concerns on account of rupee fluctuations. The government and the RBI will continue to exercise necessary vigil,” Sitharaman said.

Notably, the Indian rupee has seen record lows in the past few days due to foreign fund outflows and rising dollar demand from oil importers, amid weak appetite in global markets.

The Finance Minister said adverse weather conditions had affected growth in some quarters of FY25.

She said the inflation was stabilising and most departments could not spend their capital expenditure in time due to the Lok Sabha elections.

Sitharaman affirmed that the Consumer Price Index (CPI) for January 2025 is now close to the lower end of the RBI’s inflation target band.

“A steep correction in potato, onion, and tomato prices, along with a decline in pulse inflation supported by tariff measures, has contributed to this softening.”

She also highlighted that the goals of the Union Budget 2025 is to accelerate growth, secure inclusive development, and invigorate private sector investments.

The minister also stressed that the Budget has not reduced sectoral allocations and the effective capital expenditure during the next fiscal is estimated at Rs 19.08 lakh crore.