NEW DELHI— Union Finance Minister Nirmala Sitharaman today presented the Union Budget 2026-27, the first prepared in the newly named Kartavya Bhawan. The budget is anchored by three “Kartavyas” (duties): accelerating economic growth, fulfilling citizen aspirations, and ensuring inclusive development through Sabka Sath, Sabka Vikas.
Fiscal Math and Macro Indicators The government has set an ambitious total expenditure target of ₹53.5 lakh crore, with a significant ₹12.2 lakh crore earmarked for public capital expenditure. The fiscal deficit for BE 2026-27 is estimated at 4.3% of GDP, a slight reduction from the 4.4% recorded in the previous year’s revised estimates.
Strategic Interventions The budget introduces several frontier-sector missions to bolster “Aatmanirbhar Bharat”:
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Biopharma SHAKTI: A ₹10,000 crore outlay to establish India as a global manufacturing hub.
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Semiconductor Mission 2.0: Focus on full-stack Indian IP and supply chain fortification.
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Infrastructure: Seven new High-Speed Rail corridors and 20 National Waterways were announced to enhance connectivity.
Taxation and Ease of Living A landmark New Income Tax Act, 2025 will take effect from April 2026, aimed at simplifying compliance. Notable reliefs include tax exemptions on Motor Accident Claims interest and a reduction in TCS rates for overseas travel and education to 2%.
Minister Sitharaman also prioritized the “Orange Economy” by establishing AVGC labs in 15,000 schools, ensuring India’s youth are equipped for future digital frontiers.
