Highlights of Union Budget 2026–27

Budget context and vision

Highlights of Union Budget 2026–27: The Union Budget 2026–27, presented by Nirmala Sitharaman, outlines a growth-oriented and inclusion-driven fiscal roadmap. It is the first Budget prepared in Kartavya Bhawan, symbolising an institutional shift towards accountability and performance.

The Budget is anchored around Three Kartavyas focusing on economic acceleration, capacity building, and inclusive development. These principles align fiscal discipline with long-term national priorities.

Static GK fact: The Union Budget is presented under Article 112 of the Indian Constitution as the Annual Financial Statement.

Key fiscal numbers at a glance

The total expenditure for FY 2026–27 is pegged at ₹53.5 lakh crore, reflecting continued emphasis on capital creation. Non-debt receipts are estimated at ₹36.5 lakh crore, while net tax receipts stand at ₹28.7 lakh crore.

The fiscal deficit is targeted at 4.3% of GDP, signalling gradual consolidation. Public capital expenditure has been raised to ₹12.2 lakh crore, reinforcing infrastructure-led growth.

First Kartavya accelerating economic growth

A major thrust has been placed on manufacturing self-reliance across strategic sectors. The Biopharma SHAKTI Initiative receives ₹10,000 crore over five years, alongside expansion and upgradation of NIPER institutions.

The India Semiconductor Mission 2.0 focuses on full-stack domestic capability, including equipment, materials, and IP design. Electronics components manufacturing outlay has been enhanced to ₹40,000 crore.

Static GK tip: Manufacturing contributes around 17% of India’s GDP, with a policy target of raising it to 25%.

Infrastructure and logistics expansion

Infrastructure remains the backbone of the growth strategy, supported by an Infrastructure Risk Guarantee Fund to crowd in private investment. Dedicated Freight Corridors linking eastern and western regions will improve logistics efficiency.

The Budget proposes 20 new National Waterways and coastal cargo promotion to raise modal share. Seven high-speed rail corridors are identified as future growth connectors across major urban clusters.

Second Kartavya building human capacity

The Budget focuses on creating skilled professionals for a Viksit Bharat. 100,000 Allied Health Professionals will be added over five years through institutional upgrades and new establishments.

Education infrastructure is strengthened through five University Townships and one girls’ hostel per district. Creative industries receive a boost via AVGC labs in schools and colleges under the Orange Economy initiative.

Third Kartavya ensuring inclusive development

Farmers benefit from integrated development of 500 reservoirs and Amrit Sarovars, alongside support for high-value coastal agriculture. Bharat-VISTAAR, a multilingual AI-based agri tool, integrates digital farm advisory systems.

The Budget enhances support for Divyangjan employment, mental health infrastructure, and focused development of Purvodaya and North-East regions. States receive ₹1.4 lakh crore as Finance Commission grants.

Direct and indirect tax reforms

A landmark reform is the New Income Tax Act, 2025, effective from April 2026, aimed at simplification and reduced litigation. Multiple TCS and TDS rationalisation measures improve ease of compliance.

On the indirect tax front, customs duty rationalisation supports energy transition, electronics, aviation, and critical minerals. Trust-based customs systems and AI-enabled inspections enhance trade facilitation.

Static Usthadian Current Affairs Table

Highlights of Union Budget 2026–27: