| Bill Annual Financial Statement of the Central Government for 2026–27; Finance Bill, 2026 | |
|---|---|
 Emblem of India | |
| Submitted | 1 February 2026 |
| Submitted by | Nirmala Sitharaman |
| Submitted to | Parliament of India |
| Presented | 1 February 2026 |
| Passed | Pending |
| Parliament | 18th Lok Sabha |
| Party | Bharatiya Janata Party |
| Finance minister | Nirmala Sitharaman |
| Program Spending | Capital expenditure ₹12.2 lakh crore |
| Deficit | Template:Decreasepositive 4.3% of GDP |
| Debt | Template:Decreasepositive 55.6% of GDP |
| Website | https://www.indiabudget.gov.in |
‹ 2025 2027 › | |
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 (PIB), 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 ₹17.15 lakh crore (US$240 billion) (4.4% of GDP), 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.[1]
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.[2][3]
Highlights[edit | edit source]
Infrastructure & Capital Expenditure[edit | edit source]
- Capital expenditure for FY 2026–27 was increased to ₹12.2 lakh crore to support infrastructure-led growth. [4]
- Seven high-speed rail corridors connecting major cities were announced in the budget. [5]
- Twenty new national waterways are proposed to be made operational over the next five years. [5]
Manufacturing & Strategic Sectors[edit | edit source]
- The government announced the launch of India Semiconductor Mission 2.0 to strengthen domestic semiconductor manufacturing and supply chains. [6]
- The budget emphasised manufacturing-led growth with a focus on semiconductors, biopharma and critical minerals. [7]
- Rare earth corridors were announced in mineral-rich states to support strategic and advanced manufacturing. [8]
MSMEs & Entrepreneurship[edit | edit source]
- A ₹10,000 crore SME Growth Fund was announced to improve access to capital for micro, small and medium enterprises. [5]
Taxation & Compliance Measures[edit | edit source]
- Tax Collected at Source on overseas tour packages and on education and medical remittances under the Liberalised Remittance Scheme was reduced to 2 percent. [5]
- Measures were announced to simplify income-tax compliance, including extended timelines for filing revised returns. [5]
References[edit | edit source]
- ↑ "Key Highlights of the Union Budget and Economic Outlook 2026–27". Press Information Bureau, Government of India. 1 February 2026.
- ↑ "Union Budget 2026: Capital spending push and fiscal deficit trimmed to 4.3%". The Hindu. 1 February 2026.
- ↑ "Budget 2026 highlights: tax rebate expansion, higher infrastructure outlay". The Indian Express. 1 February 2026.
- ↑ "India raises infrastructure spending by 11.4% to record 12.2 trillion rupees for 2026-27". Reuters. Retrieved 1 February 2026.
- ↑ 5.0 5.1 5.2 5.3 5.4 "Union Budget 2026 Highlights: From Semiconductor Mission 2.0 to High-Speed Rail Corridors". Sunday Guardian Live. Retrieved 1 February 2026.
- ↑ "Budget 2026: FM announces India Semiconductor Mission 2.0, hikes electronics outlay". The Economic Times. Retrieved 1 February 2026.
- ↑ "India budget makes fresh bet on manufacturing as it seeks to sustain growth". Reuters. Retrieved 1 February 2026.
- ↑ "Union Budget 2026: Key announcements and sectoral focus". Business Standard. Retrieved 1 February 2026.