Union Budget Speech 2026-27 was delivered by Finance Minister, Smt. Nirmala Sitharaman in Indian Parliament on 1 February 2026. This is the ninth straight budget speech by the Finance Minister and the first one prepared in the new Kartavya Bhawan. Read the big announcements made in Union Budget Speech 2026-27 regarding schemes, services and strategies of the central government.
The budget is a Yuva Shakti-driven budget that focuses on the government's 'Sankalp' to support the poor, underprivileged and the disadvantaged. It aims to take confident steps towards Viksit Bharat while balancing ambition with inclusion.
Union Budget Speech 2026-27 by FM Nirmala Sitharaman
Presenting the budget on the sacred occasion of Magha Purnima and the birth anniversary of Guru Ravidas, the Finance Minister said the budget is inspired by 3 kartavya. These three duties shape the direction of the proposals for the financial year 2026-27.
3 Kartavya of Union Budget 2026-27
Here are the 3 kartavya that guide the Union Budget Speech 2026-27 and the priorities of the central government for the current financial year.
- First kartavya is to accelerate and sustain economic growth by improving productivity and competitiveness, and building resilience to volatile global dynamics.
- Second kartavya is to fulfil the aspirations of the people and build their capacity, making them strong partners in India's path to prosperity.
- Third kartavya, aligned with the vision of Sabka Sath, Sabka Vikas, is to make sure every family, community, region and sector has access to resources, amenities and opportunities.
Under the first kartavya, the government proposed interventions in six areas. These include scaling up manufacturing in 7 strategic and frontier sectors, rejuvenating legacy industrial sectors, creating Champion MSMEs, delivering a strong push to infrastructure, ensuring long-term energy security, and developing City Economic Regions.
Key Announcements in Union Budget 2026-27
The Finance Minister made several major announcements in the budget speech. Public capital expenditure is proposed to rise from ₹11.2 lakh crore in BE 2025-26 to ₹12.2 lakh crore in FY 2026-27. A Biopharma SHAKTI scheme with an outlay of ₹10,000 crore over the next 5 years was announced to build the ecosystem for domestic production of biologics and biosimilars. A dedicated ₹10,000 crore SME Growth Fund is proposed to help MSMEs grow as future champions.
Seven High-Speed Rail corridors between cities will be developed as growth connectors. These include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri. The budget also proposes a Khelo India Mission to transform the sports sector over the next decade.
For farmers, the budget proposes Bharat-VISTAAR, a multilingual AI tool that will integrate the AgriStack portals and the ICAR package on agricultural practices with AI systems. This will help improve farm productivity and provide customised advisory support to farmers.
| Detail | Information |
|---|---|
| Scheme Name | Union Budget 2026-27 |
| Presented By | Finance Minister Nirmala Sitharaman |
| Presented On | 1 February 2026 |
| Total Expenditure | ₹53.5 lakh crore |
| Public Capex | ₹12.2 lakh crore |
| Fiscal Deficit | 4.3% of GDP |
| Official Website | indiabudget.gov.in |
Direct Tax Proposals in Budget 2026-27
The new Income Tax Act, 2025 will come into effect from 1 April 2026. Simplified Income Tax Rules and Forms will be notified shortly. The budget proposes to reduce the TCS rate on overseas tour program packages from the current 5 percent and 20 percent to 2 percent. TCS for education and medical purposes under the Liberalized Remittance Scheme is also reduced from 5 percent to 2 percent.
The budget also proposes to raise the Securities Transaction Tax (STT) on Futures to 0.05 percent from the present 0.02 percent. STT on options premium and exercise of options will be raised to 0.15 percent from the present rates. The Minimum Alternate Tax (MAT) rate is proposed to be reduced from 15 percent to 14 percent.
Indirect Tax Proposals in Budget 2026-27
On the indirect tax side, the tariff rate on all dutiable goods imported for personal use will be reduced from 20 percent to 10 percent. Basic customs duty on 17 drugs or medicines will be exempted to provide relief to patients, especially those suffering from cancer. Seven more rare diseases will be added for exempting import duties on personal imports of drugs and medicines.
The budget proposes to extend the basic customs duty exemption on imports of goods required for nuclear power projects till the year 2035. It also proposes to exempt basic customs duty on components and parts required for the manufacture of civilian, training and other aircrafts.
Fiscal Consolidation
The debt-to-GDP ratio is estimated at 55.6 percent of GDP in BE 2026-27, compared to 56.1 percent in RE 2025-26. The fiscal deficit in BE 2026-27 is estimated at 4.3 percent of GDP. The total expenditure for 2026-27 is estimated at ₹53.5 lakh crore, while non-debt receipts are estimated at ₹36.5 lakh crore.
FAQ's
When was the Union Budget 2026-27 presented?
Union Budget 2026-27 was presented by Finance Minister Nirmala Sitharaman in Parliament on 1 February 2026.
What is the total expenditure proposed in Budget 2026-27?
The total expenditure for the financial year 2026-27 is estimated at ₹53.5 lakh crore, with public capital expenditure at ₹12.2 lakh crore.
What is the fiscal deficit target for 2026-27?
The fiscal deficit for 2026-27 is estimated at 4.3 percent of GDP.
Where can I read the full Union Budget Speech 2026-27?
The full budget speech is available on the official website indiabudget.gov.in and on the Press Information Bureau website pib.gov.in.