Union Budget 2026 - Updates
The Big Budget Conversation - What’s New, What’s Next, What’s for You?
Union Budget 2026: Date, Time, Updates, and Key Announcements
The Union Budget 2026 is set to be presented by Finance Minister Nirmala Sitharaman on February 1, 2026. Since it falls on a Sunday, it is yet to be announced by the exchange if the market will stay open. The session will begin at 11:00 AM, outlining key economic policies, tax proposals, and growth strategies for the upcoming fiscal year.
The Union Budget is crucial in shaping India’s economy, covering aspects like taxation, infrastructure, and industry reforms. The Budget will also be covered live on our X handle.
Union Budget 2026: Key Expectations, Sectors in Focus & Market Impact
Kotak Neo
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India Budget 2026: Highlights and Key Expectations
India’s economy is expected to grow at a steady pace, with the National Statistical Office (NSO) first advance estimates projecting real Gross Domestic Product (GDP) growth of around 7.4% in Financial Year 2025–26 (FY26). Based on this backdrop and several other estimates, here are the key expectations from the Union Budget 2026–27.
Income Taxation:
- Experts are anticipating an easing of income tax liability, possibly through a higher basic exemption limit under the new regime and rationalised slabs to boost consumption.
- There are calls for a new Direct Tax Code to replace the comprehensive Income Tax Act of 1961. The demand is aimed at reducing litigation and improving compliance.
Capital Expenditure:
- Confederation of Indian Industry (CII) recommend an increase in capital expenditure by 12% from current levels for 2026–27. If approved, the funds will support growth, attract private investment, and improve competitiveness.
- There are expectations that railways, roads, logistics, and urban development will see higher allocations.
MSMEs & Innovation
- The budget is likely to support Micro, Small and Medium Enterprises (MSMEs) through improved credit access and targeted incentives to promote technology adoption and export competitiveness.
- Deep-tech ecosystems such as AI, semiconductors, and research and development (R&D) may receive policy attention, with experts stressing the need for predictable incentives and long-term capital support.
What is a Union Budget
The Union Budget is India's annual financial statement, presented by the Finance Minister in Parliament. It outlines the government's estimated income (revenues) and expenditures for the upcoming financial year, from April 1 to March 31. The Budget is a crucial document that guides the country’s economic policies, sets growth targets, and determines fund allocations across different sectors.
Economic Growth & Development: The Budget is key in shaping India’s economic trajectory by allocating resources for infrastructure, healthcare, education, defence, and welfare programs. Investments in these areas contribute to job creation, industrial growth, and overall economic progress.
Revenue & Expenditure Management: The government collects revenue through taxes, duties, and non-tax sources. The Budget ensures that these funds are optimally allocated to meet national priorities while balancing spending and borrowing.
Fiscal Discipline & Deficit Control: A primary Budget objective is to maintain fiscal discipline, ensuring that the government's expenses do not exceed its revenue. Measures like reducing the fiscal deficit, controlling inflation, and managing public debt are integral to maintaining a stable economy.
Tax Reforms & Reliefs: One of the most anticipated aspects of the Budget is taxation policies. The government may introduce changes in income tax slabs, corporate tax rates, and GST regulations to encourage investment, support businesses, and provide relief to individuals.
Social Welfare & Inclusive Growth: The Budget aims to promote inclusive development by focusing on rural upliftment, poverty reduction, women empowerment, and MSME growth. Schemes for affordable housing, skill development, and digital transformation are often highlighted
Boosting Investments & Ease of Doing Business: Through incentives like Production Linked Incentive (PLI) schemes, corporate tax benefits, and startup funding, the Budget encourages private investments, innovation, and entrepreneurship.
Inflation & Price Stability: Budget policies impact commodity prices, interest rates, and overall inflation. The government takes measures to stabilise essential goods prices and promote sustainable growth.
Why is the Union Budget Important?
The Union Budget is a blueprint for the nation’s economic roadmap. It influences businesses, investors, taxpayers, and common citizens, shaping the economic landscape for the year ahead.
Union Budget 2026: Announcements, Expectations, and Key Themes
The finance minister of India will read her ninth budget in the assembly on Sunday, February 1, 2026. Experts believe that this year’s budget will focus on growth, reform, and fiscal prudence.
Key expectations from different segments include tax relief measures, with speculation about raising the basic exemption limit from ₹3 lakh to ₹5 lakh and potentially introducing a new Direct Tax Code.
Besides taxation, the government may also announce strong support for agriculture and rural development, including credit enhancements such as increasing the Kisan Credit Card limit to ₹5 lakh and introducing specialised schemes like the Prime Minister Dhan-Dhaanya Krishi Yojana to help low-productivity districts.
Infrastructure and capital expenditure will also be under the spotlight. Experts anticipate capex growth of around 15–20%, potentially raising allocations to ₹12.5–13 lakh crore, especially for railways and national connectivity projects.
The budget’s focus areas are fairly clear. It looks to give a stronger push to domestic manufacturing under the Make in India program, improve broadband access for schools and health centres, and create a ₹25,000 crore Maritime Development Fund. There’s also a clear push to strengthen healthcare and education, with plans to add 10,000 new medical seats.
The budget’s focus areas are fairly clear. It looks to give a stronger push to domestic manufacturing under the Make in India program, improve broadband access for schools and health centres, and create a ₹25,000 crore Maritime Development Fund. There’s also a clear push to strengthen healthcare and education, with plans to add 10,000 new medical seats. At the same time, innovation could get a boost with the proposed Deep Tech Fund of Funds.
The Budget is also likely to stick to fiscal discipline while encouraging sustainable development, wider technology adoption, MSME growth, and a move to raise FDI in insurance to 100%.
