2026 Union budget of India


The Union Budget of India for 2026–27 was presented on 1 February 2026 in the Lok Sabha by Finance Minister Nirmala Sitharaman on behalf of the Third Modi ministry. The budget outlined the Government of India's fiscal policy, taxation proposals, and expenditure priorities for the financial year 2026–27.
According to the Press Information Bureau, India's real GDP growth for 2025–26 was estimated at 7.4%, with nominal growth projected at 10% for 2026–27. Effective capital expenditure was budgeted at, while the fiscal deficit target was reduced to 4.3% of GDP and central government debt was projected to decline to 55.6% of GDP.
The budget emphasised infrastructure investment, domestic demand growth, and tax relief measures, including a full income-tax rebate for individuals earning up to ₹12.75 lakh annually. It also highlighted improvements in external trade performance and continued fiscal consolidation.

Highlights

Infrastructure & Capital Expenditure

  • Capital expenditure for FY 2026–27 was increased to ₹12.2 lakh crore to support infrastructure-led growth.
  • Seven high-speed rail corridors connecting major cities were announced in the budget.
  • Twenty new national waterways are proposed to be made operational over the next five years.

Manufacturing & Strategic Sectors

  • The government announced the launch of India Semiconductor Mission 2.0 to strengthen domestic semiconductor manufacturing and supply chains.
  • The budget emphasised manufacturing-led growth with a focus on semiconductors, biopharma and critical minerals.
  • Rare earth corridors were announced in mineral-rich states to support strategic and advanced manufacturing.

MSMEs & Entrepreneurship

Taxation & Compliance Measures

  • Tax Collected at Source on overseas tour packages and on education and medical remittances under the Liberalised Remittance Scheme was reduced to 2 percent.
  • Measures were announced to simplify income-tax compliance, including extended timelines for filing revised returns.