This document provides a detailed summary and analysis of the Union Budget 2026-27, presented by Finance Minister Smt. Nirmala Sitharaman on 1 February 2026 in Parliament. The Budget, the first prepared in Kartavya Bhawan, is guided by three main goals or 'Kartavyas':
Grow the economy faster by improving productivity and making India stronger.
Support people's aspirations by building their capabilities and opportunities.
Ensure inclusive growth so that every family, region, community, and sector benefits.
Key Budget Estimates (BE) for 2026-27:
Total spending: ₹53.5 lakh crore.
Total receipts (without borrowing): ₹36.5 lakh crore.
Fiscal deficit target: 4.3% of GDP, amounting to ₹16,95,768 crore.
Public capital expenditure: ₹12.2 lakh crore.
Debt-to-GDP ratio: 55.6% (lower than the previous year).
Major Sector Allocations (BE 2026-27):
Interest Payments: ₹14,03,972 crore.
Defence expenditure: ₹5,94,585 crore.
Transport allocation: ₹5,98,520 crore.
Education allocation: ₹1,39,289 crore.
Health allocation: ₹1,04,599 crore.
Total allocation to Finance Ministry (highest among all demands): ₹19,72,509.48 crore.
Key Initiatives and Reforms:
Manufacturing: ₹10,000 crore for 'Biopharma SHAKTI' over 5 years, India Semiconductor Mission 2.0, and ₹40,000 crore for Electronics Components.
Infrastructure: Seven High-Speed Rail corridors, Dankuni-Surat Dedicated Freight Corridor, and 20 new National Waterways.
Tax Reforms: New Income Tax Act, 2025 starting April 2026, MAT reduced to 14%, and TCS on overseas travel/education lowered to 2%.
The document also includes tables on Budget at a Glance, Deficit Statistics, Expenditure of Major Items, and Ministry/Scheme-wise Allocations. The Economic Survey 2025-26, which precedes the Budget, estimated India's economy grew by 7.4% in FY26 and highlighted that India remained the fastest-growing major economy for the 4th consecutive year.
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