The Union Budget 2026

 

The Union Budget 2026:

The Union Budget 2026–27 was presented by Finance Minister Nirmala Sitharaman on 1st February, 2026. 

This budget is characterized by a "growth-first" approach, focusing on infrastructure,high-tech manufacturing, & digital transformation in agriculture. Here is a brief summary of the key highlights:

​1. Macro-Economic Framework

​Total Outlay: 

The budget size is pegged at ₹53.5 lakh crore. 

​Fiscal Deficit: Targeted at 4.3% of GDP for FY27, continuing the path of fiscal consolidation. 

​Capex Push: Capital expenditure has been raised to ₹12.2 lakh crore, an 11.5% increase, to fuel infrastructure growth. 

​2. Taxation and Personal Finance

​New Tax Act: The government announced that the Income Tax Act, 2025 will come into effect from April 1, 2026, aimed at simplifying the 60-year-old tax code. 

​Tax Slabs: There were no changes to the income tax slabs. The new regime remains the default, with income up to ₹12.75 lakh (including standard deduction) effectively remaining tax-free for salaried individuals. 

​Market Impact: The Securities Transaction Tax (STT) on futures and options was hiked (futures to 0.05% and options to 0.15%) to curb speculative trading. 

​Relief on Remittances: Tax Collection at Source (TCS) on overseas tour packages was reduced to 2% (from 5%/20%). 

​3. Key Sectoral Announcements

​*Agriculture (Bharat-VISTAAR): Launch of a multilingual AI platform to provide customized advisory services to farmers. 

​Manufacturing: * ISM 2.0: A ₹1,000 crore allocation for the second phase of the India Semiconductor Mission.

​Biopharma Shakti: A ₹10,000 crore scheme to boost domestic production of biologics and biosimilars. 

​Healthcare: Customs duty was exempted for 17 cancer drugs and medicines for 7 rare diseases. 

​Infrastructure: Seven new High-Speed Rail Corridors (including Mumbai-Pune and Delhi-Varanasi) were proposed as "growth connectors." 

​Women & Youth: Introduction of SHE-Marts for women-led enterprises and the setting up of girls' hostels in every district for STEM students. 

​4. What Gets Cheaper vs. Costlier:

Cheaper & Costlier

Cheaper: Cancer & Rare Disease Drugs 

Costlier: Derivatives Trading (due to higher STT).

Cheaper: Personal imports (Duty cut from 20% to 10%) 

Costlier: Certain imported luxury items.

Cheaper: 

Sports Equipment & Leather goods 
Mobile phone components