Union Budget 2026, Check Key Highlights, Announcements & Major Reforms

The Union Budget 2026 had announced on 1 February 2026 by Finance Minister Nirmala Sitharaman in Parliament. It is the government’s annual financial plan that outlines estimated revenue and expenditure for the upcoming financial year (April 2026 – March 2027), including tax proposals and spending on key sectors like education, health, defence, and infrastructure.

Union Budget 2026

The Union Budget is the Government of India’s annual financial statement that outlines how much money the government expects to earn and how it plans to spend it in the upcoming financial year. Presented by the Finance Minister in Parliament, it includes details about taxes, government spending on sectors like education, health, defence, and infrastructure, as well as the fiscal deficit.

Why Union Budget 2026 is Important

The Union Budget is important because it decides how the government will collect and spend money to run the country and support development. It shapes tax policies, funds key sectors, and influences economic stability, making it a major factor in the daily lives of citizens.

• Sets Tax Policies – Affects income tax, business tax, and indirect taxes
• Allocates Government Spending – Funds health, education, defence, and infrastructure
• Supports Welfare Schemes – Provides money for social and public benefit programs
• Drives Economic Growth – Encourages investment, jobs, and business activity
• Controls Fiscal Deficit – Manages government borrowing and financial stability
• Impacts Daily Life – Influences prices, services, and employment opportunities

Union Budget 2026 First Time in History

This marks the first time in the history that the Union Budget is being presented on a Sunday. The Budget Session of Parliament started on January 28 and will continue until April 2. However, February 1 was not always the official Budget date. Until 2017, the Union Budget was usually presented on the last working day of February.

Union Budget 2026 Highlights

The Union Budget 2026 introduced several key announcements aimed at strengthening India’s economy, supporting development, and improving the lives of citizens. The Finance Minister outlined major policy decisions, tax updates, and sector-wise allocations that will shape the country’s financial and economic direction for the year ahead.

Financial & Banking Reforms

• Comprehensive review of FEMA framework, especially for non-debt instruments, to attract stable foreign investment.
• High-level Banking Sector Committee to recommend reforms aligned with Viksit Bharat goals.
• New Infrastructure Risk Guarantee Fund to ease financing of large infrastructure projects.
• Commitment to fiscal discipline under FRBM Act, 2003.

Infrastructure & Connectivity

• Public Capital Expenditure raised to ₹12.2 lakh crore, continuing infra-led growth.
• 7 new high-speed rail corridors (Mumbai–Pune, Hyderabad–Bengaluru, Chennai–Bengaluru, Delhi–Varanasi, Varanasi–Siliguri, etc.).
• New Dedicated Freight Corridors (Dankuni–Surat) to reduce logistics costs.
• Development of 20 new National Waterways over 5 years.
• Tunnel boring equipment to be manufactured in India.

Urban Development

• Cities declared engines of growth, focus on Tier II & Tier III cities.
• ₹5,000 crore per city for urban infrastructure development.
• Special push for cities with population above 5 lakh.

Manufacturing & Industry

• ₹10,000 crore Biopharma Shakti to boost domestic innovation.
• India Semiconductor Mission 2.0 (ISM 2.0) for equipment and material design.
• ₹40,000 crore outlay for Electronics Components Manufacturing Scheme.
• ₹10,000 crore container manufacturing ecosystem.
• Chemical Parks under plug-and-play model.
• Dedicated manufacturing unit for sports shoes & sports goods.
• Mega Textile Parks and National Fibre Scheme (silk & wool self-reliance).
• Rare Earth Corridor covering Odisha, Kerala, Tamil Nadu & Andhra Pradesh.

MSME & Employment

• Creating Champion SMEs: revival of 200 legacy industrial clusters.
• ₹2,000 crore top-up to Self-Reliant India Fund.
• Faster MSME payments via transaction settlement platform.
• “Corporate Mitras” in Tier II & III towns with ICAI & ICMAI support.

Green Tech, Tourism & Aviation

• Push for Carbon Capture, Utilisation & Storage (CCUS) as per national roadmap.
• Incentives for indigenous seaplane manufacturing.
• Enhanced last-mile & remote connectivity to boost tourism.

Vision-Oriented Initiatives

• Budget driven by Yuvashakti and three Kartavyas.
• High-level committee for Viksit Bharat Roadmap.
• Expansion of REM Corridors for regional industrial growth.