Union Budget 2026-27 was presented by Finance Minister Nirmala Sitharaman on 1st February 2026 (today). This is the third full budget of the Modi 3.0 government, focusing on people-centric, sustainable growth and competitiveness.
Major Announcements of Budget 2026-27
Zoning and declaration
Infrastructure investment
Capital expenditure increased to Rs 12.2 lakh crore.
agriculture
Introducing the multilingual AI tool “Bharat Vistar”. Support for coconut, cashew, sandalwood, walnut cultivation in coastal/hill areas.
MSME and Industry
₹10,000 crore for establishment of “SME Growth Fund”. An additional ₹2,000 crore for the “Self-Reliance India Fund”.
Technology and Manufacturing
“Semiconductor Mission 2.0” begins. Special preference for mining of rare minerals.
protection
The defense budget is expected to increase to around ₹7 lakh crore.
health
Reduction in drug price of 7 rare diseases including cancer.
tax
Fines only for minor tax offences; The inquiry policy is set out. Tax exemption for bike accident insurance. There is no change in income tax payment.
Social security
“She Mart” retail store initiative for women.
Tourism
Emphasis on heritage and cultural tourism.
the environment
“Purvodaya” project for the development of the East Coast. Supply of 4,000 e-buses to North East.
Financial perspective and documents
· Increase in capital expenditure: Public capital expenditure has increased tenfold from ₹2 lakh crore in 2014-15 to ₹12.2 lakh crore in 2026-27.
· Budget size: It was earlier estimated that the budget size in 2025-26 may exceed ₹ 60 lakh crore this time, which was ₹ 50.65 lakh crore.
· Vision of the Government: Minister Nirmala Sitharaman has outlined the “Mantra of Duty”, the Government is committed to economic growth, empowerment of people and equitable access to resources through ‘Sab Ka Saath, Sab Ka Vikas’.