Union Budget 2026 stands as a critical policy document shaping India’s economic direction for the fiscal year 2026–27. Presented by the Finance Minister in Parliament, the budget outlines the government’s financial roadmap focusing on inclusive growth, employment generation, digital transformation, and sustainable development. This comprehensive overview highlights key budget dates, major policy announcements, fiscal targets, and sectoral allocations crucial for exam aspirants and policy analysts.
Union Budget 2026 Date and Presentation Details
The Union Budget 2026 is scheduled to be presented on February 1, 2026, continuing the tradition of early budget presentations. This timing ensures the completion of the legislative process before the start of the new fiscal year on April 1. The Finance Minister will deliver the speech in both houses of Parliament, and the Economic Survey 2025–26 will be tabled a day prior to provide an analytical backdrop for policy decisions.
Key Budget Highlights 2026
The 2026 budget focuses on balanced growth, with emphasis on infrastructure, job creation, rural development, and digital innovation. Major highlights include:
• Fiscal Deficit target set at 5.1% of GDP, aligning with the medium-term fiscal consolidation path.
• GDP growth projection for 2026–27 placed at 7.3%, supported by domestic consumption and export recovery.
• Capital expenditure increased by 15%, prioritizing highways, railways, and renewable energy projects.
• Enhanced allocation for the PM Awas Yojana to expand affordable housing in urban and rural areas.
• Introduction of a National Employment Incentive Scheme to promote job creation in manufacturing and service sectors.
• Tax benefits for startups extended till 2028 to foster innovation and entrepreneurship.
• Simplification of GST filing system and reduction in compliance burden for MSMEs.
• New scheme launched to support ‘Make in India 2.0’ with incentives for domestic manufacturing units.
Changes in Direct and Indirect Taxation
The Union Budget 2026 proposes several important changes to simplify taxation and boost disposable income:
• Income tax rebate limit increased from ₹7 lakh to ₹8 lakh under the new tax regime.
• Corporate tax rate retained at 22% for domestic companies, with an additional 15% concessional rate for new manufacturing firms till March 2028.
• Introduction of a Digital Assets Regulation Tax (DART) at 20% to bring transparency to cryptocurrency transactions.
• Customs duties rationalized on electronic components, solar modules, and defense equipment to promote indigenous production.
• Simplified GST structure with uniform slabs proposed to reduce litigation and improve tax compliance.
Infrastructure and Capital Expenditure Focus
The government continues its infrastructure-led growth approach with massive capital allocations:
• ₹11.2 lakh crore allocated for infrastructure development across transport, energy, and logistics sectors.
• National Rail Infrastructure Mission to modernize railway stations, expand freight corridors, and electrify 100% of the rail network by 2030.
• Enhanced funding for BharatNet project to ensure last-mile broadband connectivity in rural areas.
• Focus on urban transformation under the Smart Cities 2.0 program, promoting sustainable urban planning and green mobility.
• Major expansion of renewable energy parks and incentives for green hydrogen production under the National Green Energy Mission.
Agriculture and Rural Development
Recognizing the importance of the rural economy, the budget introduces several pro-farmer initiatives:
• ₹2.4 lakh crore allocated to the agriculture sector with focus on irrigation, crop diversification, and digital agri-tech platforms.
• Expansion of PM-KISAN scheme providing direct income support to over 12 crore farmers.
• Launch of ‘AgriInfra 2.0’ for farm mechanization and cold storage infrastructure.
• Support for organic and natural farming through financial incentives and training programs.
• Rural employment programs like MGNREGA receive a 10% budget increase to ensure livelihood security.
Health, Education, and Social Welfare
The budget prioritizes human capital development through increased investment in health and education:
• ₹1.5 lakh crore allocated for the National Health Mission and Ayushman Bharat digital health infrastructure.
• National Nutrition Mission strengthened to combat malnutrition among children and women.
• ₹1.25 lakh crore earmarked for education, emphasizing teacher training, digital classrooms, and skill development programs.
• New scheme launched to provide scholarships for meritorious students from economically weaker sections.
• Special focus on women empowerment programs, including maternity benefits and entrepreneurship grants.
Environment, Climate, and Sustainable Development
In line with India’s commitment to climate action, the budget proposes several green measures:
• Green Energy Fund of ₹50,000 crore established for renewable projects and electric vehicle manufacturing.
• Additional funding for afforestation and carbon sink initiatives to meet net-zero emission goals by 2070.
• Expansion of waste management programs under Swachh Bharat Mission 2.0.
• Implementation of water conservation projects under Jal Jeevan Mission in 200 new districts.
• Incentives for industries adopting energy-efficient technologies and sustainable production methods.
Digital India and Innovation
The budget continues to strengthen India’s digital ecosystem with forward-looking measures:
• ₹75,000 crore allocated for Digital India Expansion to promote AI, machine learning, and cybersecurity research.
• Introduction of Digital Governance Accelerator to integrate public service delivery through unified platforms.
• Support for 5G and upcoming 6G technology pilots under BharatNet Plus program.
• Creation of a National Data Center Grid for secure storage and access of government data.
• Launch of ‘SkillTech Mission’ to train youth in emerging technologies and coding skills.
Frequently Asked Questions (FAQs)
1. When will the Union Budget 2026 be presented?
It will be presented on February 1, 2026, by the Finance Minister in Parliament, continuing the tradition of early budget presentations.
2. What is the fiscal deficit target for 2026–27?
The fiscal deficit target is set at 5.1% of GDP, reflecting the government’s commitment to fiscal consolidation.
3. What are the key focus areas of Union Budget 2026?
Major focus areas include infrastructure, employment generation, agriculture, digital innovation, and climate sustainability.
4. Has the income tax rebate limit changed in 2026?
Yes, the rebate limit under the new tax regime has been increased from ₹7 lakh to ₹8 lakh to provide relief to middle-income taxpayers.
Stay Updated with Daily Current Affairs 2026
Discover more from Current Affairs World
Subscribe to get the latest posts sent to your email.
