The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on January 31, 2026, emphasizes three “kartavyas”: accelerating economic growth, fulfilling aspirations, and ensuring inclusive development under Viksit Bharat. It targets a fiscal deficit of 4.3% of GDP, down from 4.4% in FY 26 RE, with total expenditure at ₹35.3 lakh crore, prioritizing capex at ₹17.1 lakh crore. Fiscal Strategy The budget maintains fiscal prudence amid global uncertainties, aiming for a debt-to-GDP ratio of 50±1% by FY 31. Revenue receipts are projected at ₹18.1 lakh crore, driven by robust tax collections (income tax 21%, corporation tax 18%). Expenditure focuses on infrastructure (₹17.1 lakh crore capex), defence (₹5.94 lakh crore), and rural development (₹2.73 lakh crore), balancing consolidation with growth. Growth Initiatives Manufacturing gets a boost via schemes in 7 strategic sectors like semiconductors (ISM 2.0), biopharma (SHAKTI), and textiles, plus reviving 200 legacy clusters. MSMEs receive a ₹10,000 crore fund, TReDS enhancements, and professional support for scaling as “Champions”. Infrastructure includes 7 high-speed rail corridors (e.g., Delhi-Varanasi), new freight corridors, and ₹2 lakh crore state support via SASCI. Sectoral Focus Agriculture introduces Bharat-VISTAAR (AI-integrated Agri Stack), high-value programs for cashew, cocoa, and coconut, plus fisheries reforms. Energy security covers CCUS (₹20,000 crore), nuclear expansions, and critical minerals processing. Services sector tax reforms support IT (safe harbour to ₹2,000 crore) and medical tourism hubs. Tax ReformsA new Income Tax Act 2025 simplifies compliance from April 2026, with rationalized slabs, TDS/TCS cuts (e.g., LRS education/medical to 2%), and immunity expansions. Customs eases include duty exemptions for exports and trusted importers. Indirect taxes promote energy transition via biogas CNG and lithium-ion exemptions. Inclusivity Measures People-centric efforts empower Divyangjan (Divyang Kaushal Yojana), mental health (NIMHANS-2), and Purvodaya states. Education upgrades include university townships and STEM hostels; tourism develops trails and circuits. This aligns with sustainability, job creation, and ease of doing business for ~7% GDP growth.
Quote from Pradeep Kanthed, Ceo, Tatanagar Metal Industries
