Union Budget 2026

On February 1, 2026, Finance Minister Nirmala Sitharaman presented her record ninth consecutive Union Budget. This year’s budget was historic—it was the first time a budget was presented on a Sunday.

The Budget 2026 focused on three "Kartavyas" (Duties): 1 ) accelerating growth, 2 ) fulfilling aspirations, and 3 ) ensuring inclusive development.

1. The Big Numbers: Growth vs. Discipline

The government is walking a tightrope between spending on infrastructure and keeping the country's debt in check.

* Total Expenditure: Pegged at ₹53.5 lakh crore.

* Govt Capital Expenditure increased to ₹12.2 lakh crore (up from ₹11.2 lakh crore). This means more highways, faster trains, and better ports etc .

* Fiscal Deficit: Targeted at 4.3% of GDP for FY27, down from 4.4% in the previous year.

* Debt-to-GDP to be cut to 55.6 pc from 56.1 pc in the current fiscal year .This signals the government's commitment to financial stability.

2. Personal Finance & Taxation:

*No change in Income Tax rates .

*Securities Transaction Tax (STT) raised on futures and options (F&O) to 0.05 pc and 0.15 pc

*TCS on sale of overseas tour packages slashed to 2 pc

* New Tax Act 2025: A completely revamped Income Tax Act will come into effect from April 1, 2026 .

*ITR filing date for non audit businesses extended by a month till August 31

* The deadline to revise tax returns has been extended from December 31 to March 31.

* TCS Relief: Tax Collected at Source (TCS) on remittances for education and medical treatment (above ₹10 lakh) has been slashed from 5% to 2%.

New Tax Regime Slabs for FY 2026-27:

| Income Range | Tax Rate |

| :--- | :--- |

| Up to ₹4 Lakh | Nil |

| ₹4 - ₹8 Lakh | 5% |

| ₹8 - ₹12 Lakh | 10% |

| ₹12 - ₹16 Lakh | 15% |

| ₹16 - ₹20 Lakh | 20% |

| ₹20 - ₹24 Lakh | 25% |

| Above ₹24 Lakh | 30% |

3. Key Sectoral Highlights: From "Shakti" to "Semiconductors"

* Biopharma SHAKTI: A ₹10,000 crore outlay to turn India into a global biopharma hub.

* Rare Earth Corridors: New corridors will be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to secure minerals needed for high-tech electronics.

* Semiconductor Mission 2.0: Continued push to make India a chip-making powerhouse.

* Connectivity: 20 new National Waterways ,

7 high speed rail corridors connecting major cities and a dedicated freight corridor linking Surat to Dankuni were announced.

* Focus on content creators, with AVGC (Animation, Visual Effects, Gaming, and Comics) Labs to be set up in 15,000 schools.

4. Agriculture & The "Aam Aadmi"

Farmers and the rural economy received targeted support:

* Bharat-VISTAAR: A multilingual AI platform to provide real-time advisory to farmers.

* SHE-Marts: New marketplaces specifically for rural women-led enterprises.

* Healthcare: 17 life-saving drugs (including those for cancer) are now exempt from basic customs duty, making treatment more affordable.

*Defence outlay 7.85 lakh cr

The Bottom Line

Budget 2026 avoids populist splashes and instead doubles down on manufacturing, infrastructure, and technology. For the average taxpayer, the lack of a tax cut might be a slight letdown, but the promise of a simplified Tax Act and better infrastructure suggests a long-term vision for a "Developed India" by 2047.