Union Budget 2026: Date, Highlights & Budget Expectations
ExplainedThe Union Budget 2026 was presented at a time when India is positioning itself for long-term growth, global competitiveness, and inclusive development.
Presented by Nirmala Sitharaman under the leadership of Narendra Modi, the budget focused on balancing fiscal discipline with high capital expenditure while laying a strong foundation for Viksit Bharat 2047.
Union Budget 2026 Date
The Union Budget 2026 was presented on February 1, 2026, in Parliament. This marked Nirmala Sitharaman’s ninth consecutive budget presentation, a record in itself. The budget was introduced alongside the Finance Bill 2026 and the fiscal policy statements for FY 2026–27.
Budget Expectations Before Union Budget 2026
Before the presentation, budget expectations were centred on:
- Income tax relief for the middle class
- Support for MSMEs and job creation
- Higher capital expenditure for infrastructure
- Fiscal deficit control amid global uncertainty
- Boost to manufacturing, AI, defence, and exports
While income tax relief was widely anticipated, the government chose fiscal prudence and long-term structural reform over immediate populist measures.
Union Budget 2026 Highlights
1. Fiscal Discipline & Growth Balance
- Fiscal deficit projected at 4.3% of GDP for FY27, down from 4.4% in FY26
- Debt-to-GDP ratio estimated at 55.6%
- Non-debt receipts estimated at ₹36.5 lakh crore
2. Massive Push for Capital Expenditure
- Public capex increased to ₹12.2 lakh crore for FY27
- Focus on highways, railways, ports, waterways, and urban infrastructure
- Continued emphasis on Tier-2 and Tier-3 cities
3. Infrastructure & Connectivity
- 7 high-speed rail corridors announced as growth connectors
- Expansion of national waterways and coastal shipping
- East Coast Development Corridor and tourism hubs in Purvodaya states
4. Manufacturing, MSMEs & Atmanirbhar Bharat
- India Semiconductor Mission 2.0 with ₹40,000 crore outlay
- Biopharma SHAKTI mission with ₹10,000 crore allocation
- Rare earth corridors and revival of legacy industrial clusters
- ₹10,000 crore SME Growth Fund and continued Self-Reliant India Fund
5. Education, Youth & Employment
- Five university townships near industrial corridors
- One girls’ hostel in every district
- Education-to-Employment Standing Committee
- Skill development across healthcare, allied services, and technology
6. Healthcare & Social Welfare
- Duty exemption on 17 essential cancer drugs
- NIMHANS-2 and expansion of mental health infrastructure
- Training of 1.5 lakh caregivers
- Expansion of emergency and trauma care centres
7. Clean Energy & Sustainability
- Phased blending of Compressed Bio-Gas (CBG) in CNG
- Support for battery energy storage systems and solar manufacturing
- ₹20,000 crore allocation for Carbon Capture Utilisation & Storage (CCUS)
8. Direct & Indirect Tax Measures
- Reduced TCS to 2% for overseas education and medical remittances
- Simplified TDS for NRI property transactions (PAN-based)
- Tax holiday till 2047 for foreign cloud service providers using Indian data centres
- STT increased on futures and options
- No major relief for personal income tax slabs
What Union Budget 2026 Means for India
Prime Minister Modi described the budget as “a highway of immense opportunities”, calling it youth-focused, growth-oriented, and future-ready. The budget reinforces India’s ambition to become the world’s third-largest economy, with strong emphasis on infrastructure, manufacturing, technology, and fiscal stability.
While short-term market reactions were volatile, the Union Budget 2026 highlights signal a long-term commitment to sustainable growth, competitiveness, and inclusive development.
The Union Budget 2026 prioritises high capital expenditure, controlled fiscal deficit, and structural reforms over immediate tax giveaways. Though income-tax-paying individuals may feel disappointed, the budget sets a strong base for economic expansion, employment generation, and global leadership as India moves toward Viksit Bharat 2047.