The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman at Kartavya Bhawan, is a carefully structured document that reflects the government’s vision of Viksit Bharat. Anchored in three guiding duties i.e., accelerating growth, building capacity, and ensuring inclusive development. The budget seeks to balance fiscal responsibility with transformative initiatives that touch every sector of the economy.
At the fiscal level, the government has outlined an expenditure of ₹53.5 lakh crore, supported by non-debt receipts of ₹36.5 lakh crore and net tax receipts of ₹28.7 lakh crore. Capital expenditure has been raised to ₹12.2 lakh crore, up from ₹11 lakh crore in the previous year, underscoring the emphasis on infrastructure-led growth. Importantly, the fiscal deficit is pegged at 4.3% of GDP, a slight improvement over last year, while the debt-to-GDP ratio is projected at 55.6%, reflecting a commitment to fiscal consolidation.
The budget’s growth agenda rests on six major interventions. Manufacturing receives a strong push through initiatives such as Biopharma Shakti with an outlay of ₹10,000 crore, the launch of India Semiconductor Mission 2.0, and the development of rare earth corridors across key states. Legacy industrial clusters are set for revival, with 200 clusters earmarked for modernization. MSMEs, recognized as future champions, will benefit from a ₹10,000 crore SME Growth Fund and additional support to the Self-Reliant India Fund.
Infrastructure continues to be the backbone of the growth strategy. Beyond the enhanced public capex, the government has announced new freight corridors, 20 national waterways, and schemes to promote coastal cargo and seaplane connectivity. Energy security also finds a place in the agenda, with ₹20,000 crore allocated for carbon capture, utilization, and storage projects. Complementing these measures is the creation of City Economic Regions, each supported with ₹5,000 crore over five years, alongside seven new high-speed rail corridors to strengthen urban and regional connectivity.
The social dimension of the budget is equally pronounced. Education initiatives include the establishment of girls’ hostels in every district to promote Science, Technology, Engineering, the Arts and Mathematics (“STEM”) education and the rollout of AVGC Content Creator Labs in schools and colleges to prepare two million professionals by 2030. Healthcare is bolstered through regional medical hubs, while sports infrastructure will expand under the Khelo India Mission. Agriculture and rural empowerment are addressed through Bharat-VISTAAR, an AI-powered advisory tool for farmers, and the expansion of Self-Help Entrepreneur Marts to support women-led enterprises. Special attention has been given to Purvodaya States and the North-East, with industrial corridors, tourism projects, and Buddhist circuit development.
Taxation reforms are designed to simplify compliance and reduce litigation. The new Income Tax Act, 2025 will come into effect from April 2026, promising a streamlined framework. TCS on overseas tour packages has been reduced to 2%, while foreign cloud service providers have been granted a tax holiday till 2047. Customs duties have been rationalized, with personal imports now attracting only 10% duty and exemptions extended to 17 drugs, including those for rare diseases. Lithium-ion batteries, critical minerals, and aviation components also benefit from duty relief, while a single-window, AI-enabled customs clearance system is expected to enhance efficiency.
Taken together, the Union Budget 2026–27 is a forward-looking document that blends ambition with inclusion. By investing in infrastructure, empowering industry and MSMEs, strengthening agriculture, and simplifying taxation, it lays down a roadmap for sustainable and equitable growth. More than a financial statement, it is a vision for India’s transformation into a resilient and prosperous nation.
Conclusion
The Union Budget 2026–27 stands out for its factual depth and fiscal clarity. With a total expenditure of INR 53.5 lakh crore and capital expenditure raised to INR 12.2 lakh crore, the government has reaffirmed its commitment to infrastructure-led growth. On the revenue side, non-debt receipts are projected at INR 36.5 lakh crore, while net tax receipts are estimated at INR 28.7 lakh crore, ensuring a stable fiscal base.
Fiscal discipline is evident in the fiscal deficit pegged at 4.3% of GDP, an improvement from 4.4% in the previous year, and a debt-to-GDP ratio of 55.6%, down from 56.1%. Industry and MSMEs are supported through INR 10,000 crore each for Biopharma Shakti and the SME Growth Fund, while energy security receives INR 20,000 crore for carbon capture, utilization, and storage projects. Connectivity is being transformed with seven high-speed rail corridors, 20 new national waterways, and INR 5,000 crore allocations for each City Economic Region.
On the social front, the budget promises girls’ hostels in every district, AVGC labs in 15,000 schools and 500 colleges, and regional medical hubs to strengthen healthcare. Farmers will benefit from Bharat-VISTAAR, an AI-powered advisory tool, while women entrepreneurs gain through the expansion of Self-Help Entrepreneur Marts. Tax reforms include the new Income Tax Act effective April 2026, TCS on overseas tour packages reduced to 2%, and a tax holiday for foreign cloud service providers till 2047. Customs rationalization lowers personal import duty to 10% and exempts 17 drugs including rare disease treatments, alongside relief for lithium-ion batteries, critical minerals, and aviation components.
Taken together, these measures make the Union Budget 2026–27 are a fact rich roadmap for growth, inclusion, and fiscal stability. It is a budget that quantifies ambition and translates vision into measurable outcomes.
