On 1st February 2026 the Union Budget 2026-27 was presented by Finance Minister of India Smt. Nirmala Sitharaman in Lok Sabha, New Delhi. It presents the financial plans of government, including its sources of income, planned spending, and key policy decisions for the financial year 2026-27. It explains how the government plans to manage and allocate the nation’s financial resources. The budget addresses economic development, employment generation, development of infrastructure, development of businesses, development of citizens, and maintaining fiscal discipline.
The government has enhanced its expenditure on infrastructure to develop the economy. There has been an increase in the allocation of funds for roads, railways, ports, and transport infrastructure. This will help in enhancing connectivity and lowering logistics costs. There have been incentives announced for exporters to encourage Indian products in international markets. Export credit schemes have been increased, and customs procedures have been made simpler. Importers will get benefits of lowered duties on necessary raw materials and industrial inputs.The budget provides robust support for lithium and other key minerals. There are incentives for exploration, processing, and battery production in the country. This will help the electric vehicle and clean energy sectors. It will also minimize dependence on imports. The government has made several announcements for the IT industry. There is support for software services, data centers, artificial intelligence, and cloud computing. Special incentives are provided for tech startups and innovation centers. These measures will help India become a leader in technology globally.
There are several major changes in direct taxation. The government has made income tax laws simpler to understand. The new Income Tax Act, 2025, will come into effect from April 2026. The purpose of this act is to minimize disputes and maximize transparency. The tax rates have been made simpler to provide relief to the middle class. The standard deductions have been modified to maximize income. The digital tax filing system has been improved to provide faster refunds and easier compliance. Severe punishment will be given to those who evade taxes, but honest taxpayers will get relief due to simplified procedures. The budget also emphasizes inclusive growth. Special attention is given to small businesses and MSMEs through a growth fund. This will enable them to grow and incorporate new technology. Expenditure on healthcare and education has been enhanced. New healthcare facilities will ensure better access to quality healthcare. Skill development schemes emphasize new areas such as IT services, gaming, animation, and digital design. This will enable the country to develop and enhance employment opportunities.