On February 1, 2026, Union Finance Minister Nirmala Sitharaman unveiled key proposals in her Budget speech. She proposed a ₹100 crore incentive for municipal corporations issuing single bonds above ₹1,000 crore. This move aims to boost municipal financing. Sitharaman also announced the restructuring of REC Limited (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC). This is part of the government’s plan to strengthen public sector financial institutions. A new high-level committee on 'Banking for Viksit Bharat' will be set up. The minister said, "the country's banking sector is characterised by a strong balance sheet, historic high profitability." Further, she proposed a review of foreign exchange management rules related to non-debt instruments. Highlighting social progress, Sitharaman added that nearly 25 crore people have moved out of multi-dimensional poverty.