Union Budget 2026: 10 Key Highlights of Nirmala Sitharaman’s 9th Budget

Union Budget 2026: Finance Minister Nirmala Sitharaman will present her ninth Union Budget Yesterday, Sunday, February 1st. India is the world's fastest-growing major economy. To sustain this momentum, the budget must reflect this dynamism. The Budget for FY 2027 is likely to prioritize high growth in defense, infrastructure, capital expenditure, power, and affordable housing.

Union Budget 2026: 10 Key Highlights

• This year's Union Budget will break a 75-year tradition and establish a new one. Until now, the majority of the budget speech has been in Part A, while Part B has focused on tax and policy announcements. However, this time, Finance Minister Nirmala Sitharaman has made a significant shift in strategy, focusing entirely on Part B, which will define the country's long-term economic goals and strategic roadmap. According to sources, this time Part B will focus on Vision 2047 for a developed India, encompassing leveraging local strengths globally, participation in global supply chains, skills development, employment, and long-term economic strategies.
• The Finance Minister is expected to outline both short-term priorities and long-term goals for India in Part 2 of her budget speech. This is a crucial time as India enters the second quarter of the 21st century. Emphasis will be placed on the country's local strengths and global ambitions.

• India's economy has so far weathered the punitive US tariffs imposed by President Donald Trump remarkably well. Government spending on infrastructure is expected to increase by 7.4 percent for the year ending March 31. Income and consumer tax cuts have boosted consumer spending.
• The Union Budget 2026 is likely to give top priority to rural development and agricultural growth. Sources said on Saturday that the Finance Minister may announce increased funding for programs aimed at boosting employment opportunities in rural areas.
• 5. The Ministry of Rural Development has urged the Finance Ministry to increase the budget for the new employment guarantee scheme, "Viksit Bharat-G Ram Ji," or VB-G Ram Ji, to ₹1.51 lakh crore. This would be a 72 percent increase compared to last year. Last year, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) received a budget of ₹86,000 crore.
• In her first budget in 2019, Sitharaman replaced the leather briefcase, which had been used for decades to carry budget documents, with a traditional "bahi-khata" (ledger) wrapped in red cloth. Like the last four years, this year's budget will also be paperless.

• The budgetfor FY2026 projects a fiscal deficit, the difference between government revenue and expenditure, at 4.4 percent of GDP. India has achieved its fiscal consolidation roadmap with a deficit of less than 4.5 percent of GDP in FY2026. Consequently, the market will be closely watching the reduction in the debt-to-GDP ratio this time.
• The government's planned capital expenditure for this fiscal year is ₹11.2 lakh crore. Today's budget is likely to maintain the focus on capital expenditure and potentially increase the capital expenditure target by 10-15 percent from current levels. The private sector will be closely watching this.
  
• News agency Reuters reported that the budget is expected to include further reforms to attract more domestic private and foreign investment. This includes plans to make it easier for existing licensed foreign companies to invest in defense companies.
• The Union Budget 2026 comes against a complex backdrop. On one hand, domestic demand remains robust, and inflation has eased from recent highs. On the other hand, global uncertainties have created uncertainty about the future. These include geopolitical tensions, volatile commodity prices, and uneven monetary easing by major central banks.

Read More: Union Budget 2026 Today: Nirmala Sitharaman’s 9th Budget, History, Records and Facts