FM Sitharaman: Middle class diversifying investments, savings not falling

• FM Sitharaman dismissed concerns about falling household savings, stating the middle class is diversifying investments.
• She explained that savings are now channeled into retail markets, mutual funds, and asset building like home loans, not just traditional small savings.
• Sitharaman warned against state governments' "freebies," citing concerns about creating intergenerational financial burdens.
• She is advising state Finance Ministers on debt restructuring to manage high-cost loans and promote sustainable finances.

Why It Matters: It reveals government's view on household savings and state fiscal health.