MeitY Misses Funding Target as Finance Ministry Delays Key Tech Initiatives

MeitY – The Ministry of Electronics and Information Technology was unable to secure the requested budget from the Finance Ministry for several flagship technology programmes, according to a recent parliamentary panel report.

Parliamentary Panel – The oversight committee said the funding gap threatens timelines for initiatives such as AI research hubs, semiconductor incentives, and the Digital India Mission 2026 pillars that aim to expand broadband, e‑governance and smart city projects.

Finance Ministry – Officials cited competing fiscal priorities and a need for tighter cost justification, urging MeitY to align proposals with the 2025‑26 budget constraints and submit revised cost‑benefit analyses before any new allocations.

Industry Stakeholders – In parallel, MeitY has continued routine consultations on safety and security requirements, engaging industry on security standards while discussing AI transformation of IT services, aiming to keep the sector active as funding talks stall.