Finance Minister Nirmala Sitharaman on Wednesday dismissed allegations that some states have not been allocated enough funds in the Union Budget 2026. Speaking in the Lok Sabha during the debate on the Union Budget 2026, Sitharaman said that the Centre is “willing to work with the states”.
Referring to the 16th Finance Commission report, the finance minister asserted that the recommendations of the 16th Finance Commission have been met. She further stated that the central government is willing to work with states to set up higher education centres.
“We have said that instead of waiting to qualify and finishing your education and coming out and seeking where should they go for acquiring skills, the skilling element can be brought into education itself and at the end of the day when they come out, students can say I can become entrepreneur and this kind of a mega centre can be kept next to any industrial cluster that any state has.
“So, these mega entrepreneurship building centres as education hubs can also come up from any state. We are willing to work with states so that this mammoth higher education centre can be propped up and therefore students can go there and come out as entrepreneurs…,” she said.
Sitharaman also stated that the Centre is planning to set up mega textile parks and welcomed states to enter the industrial textiles sector.
“Whether it’s car cushions, which are completely made of industrial textiles…so these new age textiles requirements can also be fulfilled. I welcome any state that wants to enter this area. The Centre is willing to collaborate with them,” she said.
According to Sitharaman, the Budget 2026 has increased public capex from Rs 11.2 lakh crore in BE 2025-26 to Rs 12.2 lakh crore in FY2026-27. She further added that, taken together with the provisions for states and Union Territories, the effective capital expenditure is Rs 17.1 lakh crore.