Finance Minister Nirmala Sitharaman said in Delhi that household savings are not falling but shifting into new investment channels. She noted rising retail participation in markets and growing asset creation through home loans and property expansion.

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• Savings shifting from bank/post office deposits to markets and mutual funds
• FM says overall household savings steady when all instruments counted
• Households building assets: more home loans, extensions, second homes
• Loans for property add to wealth despite repayment burden
• Savings now treated as investments, often flowing directly into markets
• FM urges broader view beyond fixed deposits and small savings schemes
• Warns states on freebies creating long-term debt burdens
• Some states borrowing to fund freebies; risks high-cost debt traps
• Centre holding discussions with state FMs on debt restructuring options
• Sitharaman says states should replace expensive old loans even with penalties
• Emphasis on sustainable finances; borrowing should not fund routine spending