Shared ground
The speaker says that, in this moment, God is not looking for a standard ritual gift ( or burnt offering). The point is not stinginess; the speaker claims he would bring an offering if that were what God wanted (v.16). Instead, the fitting “offering” is inward: a spirit that is and a heart that is “broken and contrite” (v.17). The speaker also states confidence that God will not reject (“despise”) that kind of humbled heart (v.17).
Where interpretation differs
Some readers take v.16 as a temporary, situation-specific statement: ritual offerings are not the right response to this kind of moral failure unless inner repentance is present. Others hear a broader critique: God does not ultimately want ritual at all, or at least not as something that can repair the relationship.
Why the disagreement exists
The psalm uses strong wording (“you don’t delight… you have no pleasure”) that can sound absolute, but the larger psalm later talks positively about sacrifices again (vv.18–19). That creates a question of scope: is v.16 denying sacrifice in principle, or denying its usefulness as a substitute for what is needed here?
What this passage clearly contributes
Explicitly, it teaches that external religious actions cannot function as a “payment” that replaces a truthful, humbled inner posture before God (vv.16–17). It also frames repentance itself as a kind of “sacrifice” offered to God: the inner collapse of pride and self-justification (v.17). And it affirms that God does not treat such contrition as contemptible or worthless, but as something he does not reject (v.17). See also Isaiah 57:15.