Union Budget 2026-27 Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 on 1 February 2026 in the Indian Parliament.The Budget outlines the government’s plans for taxes, spending, economic growth, and reforms for the financial year starting April 2026.
Union Budget 2026 –27 at a Glance
| Parameter | 2026–27 Budget |
|---|---|
| Presentation Date | 1 February 2026 |
| Total Revenue (Non-Debt) | ₹36.5 lakh crore |
| Total Expenditure | ₹53.5 lakh crore |
| Capital Expenditure (CapEx) | ₹12.2 lakh crore |
| Fiscal Deficit | 4.3% of GDP |
| Government Debt | 55.6% of GDP |
| GDP Growth (Estimate) | ~7.4% real growth |
| Inflation (Apr–Dec 2025) | ~1.7% |
| Source: Official Budget data & government estimates |
1. Tax Policy – What Changes for You
Income Tax Slabs Stay Same
-
No major changes to basic tax rates for individuals this year.
Tax Filing Made Easier
-
Revised return filing window extended to 31 March 2026.
-
New penalties are more graded (₹1,000–₹5,000).
Simplified TDS/TCS & Compliance
-
Lowered TCS (Tax Collected at Source) on:
-
Overseas travel
-
Education & medical remittances
– All at 2%, making international payments cheaper.
-
Foreign Digital Firms Incentives
-
Tax holiday for foreign companies providing cloud services through Indian data centers up to 2047.
STT (Securities Transaction Tax) Increased
-
STT on futures trading raised from 0.02% to 0.05%.
-
Options STT increased too — this could affect traders.
2. Big Push for Infrastructure & Connectivity
Record Capital Expenditure
-
CapEx increased to ₹12.2 lakh crore, up ~9% from last year.
-
Focus on roads, rail, logistics, waterways and urban growth.
New Major Projects
| Project Type | Details |
|---|---|
| High-Speed Rail Corridors | 7 corridors connecting major cities (e.g., Mumbai–Pune, Delhi–Varanasi) |
| Dedicated Freight Corridors | New routes like Dankuni–Surat for faster goods movement |
| National Waterways | 20 new waterways operational over next 5 years |
| Infrastructure Risk Fund | Supports lenders in funding major projects |
| Coastal & Inland Shipping Boost | Promotes coastal cargo share from 6% to 12% by 2047 |
3. Manufacturing & Strategic Industries
Sector-Wise Growth Plans
-
Biopharma SHAKTI: ₹10,000 crore to make India a global hub for bio manufacturing.
-
Semiconductor Mission 2.0: New mission to boost chip design & production.
-
Electronics Capital Support: ₹40,000 crore allocation for electronics manufacturing.
-
Rare Earth Corridors & Chemical Parks: Support for mineral processing and chemical industry growth.
-
Mega Textile Parks: To modernize textile sector and increase exports.
Manufacturing & Growth Table
| Initiative | Budget / Focus |
|---|---|
| Biopharma SHAKTI | ₹10,000 crore (5 yr) |
| Electronics Components Scheme | ₹40,000 crore |
| Mega Textile Parks | Challenge-mode development |
| Rare Earth Corridors | Mineral processing + industry support |
| Sources: Government announcements & Budget documents |
4. Energy, Environment & Clean Tech
Green & Climate Initiatives
-
₹20,000 crore for Carbon Capture & Storage (CCUS) to reduce emissions from hard-to-abate sectors.
-
Tax and duty relief on solar glass and battery materials to support renewable energy.
5. Health, Education & Skills
Healthcare
-
Customs duty exemption on critical medicines, including cancer drugs.
-
Expanded healthcare education and regional hubs.
Education & Employment
-
New institutes and training to boost youth skills.
-
AVGC labs in schools to encourage creative technologies.
6. Agriculture & Rural Economy
-
Though agriculture’s share in total budget outlay remained modest, there is continued support through schemes and rural development plans.
7. Economy & Markets – Quick Facts
| Economic Indicator | Forecast / Impact |
|---|---|
| Real GDP Growth (2025–26 est.) | ~7.4% |
| Inflation (Apr–Dec 2025) | ~1.7% |
| Fiscal Discipline | Deficit lowered to 4.3% of GDP |
| Banking & Bonds | Reforms to expand markets & municipal bonds |
| Capital Markets | STT increases could impact trading |
| Sources: official estimates & market reactions |
Union Budget 2026–27 PDF: Click Here
The Union Budget 2026–27 focuses on building future infrastructure, boosting manufacturing, making tax rules simpler, and supporting growth with fiscal discipline.It aims to make India more competitive globally and enhance opportunities for citizens across sectors.
FAQs On Union Budget 2026–27
Q1. What is the vision of Budget 2026?
Budget 2026 aims to promote sustainable economic growth with a strong emphasis on boosting public consumption and overall demand.
Q2. What fiscal deficit target has been set in Budget 2026?
The fiscal deficit for FY 2026–27 has been pegged at 4.3% of GDP.
Q3. What changes has Budget 2026 introduced in income tax rules and filing?
Budget 2026 has not announced major changes in income tax rates or deductions; however, it has revised key income tax return filing deadlines.