Finance Minister Nirmala Sitharaman on Sunday proposed incentives of Rs 100 crore for single bond issuance by municipal corporations with borrowings exceeding Rs 1,000 crore. The move aims to strengthen urban financing and promote greater investment in local infrastructure.

In her ninth consecutive Union Budget, Sitharaman also announced the restructuring of public sector financial institutions, including REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC), as part of efforts to bolster the government’s financial sector framework. She further proposed the formation of a high-level committee on “Banking for Viksit Bharat” to guide reforms in the sector.