Budget 2026: Key details you need to know
What's the story
The Union Budget for 2026-27 will be presented by Finance Minister Nirmala Sitharaman on February 1. This will be her ninth consecutive budget presentation, marking India's 88th budget since independence. The annual financial plan outlines the government's revenue and expenditure strategies for the upcoming fiscal year, starting April 1, 2026. It is closely monitored by taxpayers, businesses, investors, and state governments alike.
Budget breakdown
A detailed account of government's financial plans
The Union Budget is a comprehensive document detailing the government's expected income from taxes, dividends, borrowings, and other sources. It also outlines how this money will be spent on various sectors such as infrastructure, defense, welfare programs, education, and healthcare. The Constitution mandates that the budget be presented to Parliament every year under Article 112.
Presentation date
Why is the budget presented on February 1?
The Union Budget was moved to February 1 in 2017, from the last working day of February. The change was made to give ministries and departments enough time to implement budget announcements from the start of the new financial year on April 1. This way, delays caused by earlier timelines can be avoided.
Budget components
Union Budget consists of revenue and capital budgets
The Union Budget usually has two main parts: the Revenue Budget and the Capital Budget. The Revenue Budget deals with the government's day-to-day expenses and income, including tax collections and subsidies. On the other hand, the Capital Budget focuses on long-term expenditure such as infrastructure creation, asset building as well as capital receipts like borrowings and disinvestment proceeds.
Preparation details
The budget-making process and its significance
The budget-making process starts months in advance, with various ministries submitting their expenditure estimates and policy demands to the Finance Ministry. Consultations are held with stakeholders like industry bodies, economists, farmers' groups, and social sector representatives. Based on revenue projections and fiscal targets, the Finance Ministry finalizes allocations and policy proposals. A "Halwa Ceremony" will be held before presenting the budget speech in Lok Sabha on February 1.
Parliamentary process
What happens on budget day?
On Budget Day, the Finance Minister presents the speech in Lok Sabha outlining major policy measures, tax changes, and spending priorities. After this, the budget documents are tabled in Parliament and made public. In the following days, Parliament debates these proposals with ministries seeking approval for their expenditure through demands for grants. The Finance Bill containing tax proposals is also discussed and passed during this period.
Importance
Why does it matter to individuals and businesses?
For individuals, the Union Budget can alter income tax slabs, deductions and exemptions, directly shaping take-home pay and savings choices. For businesses, it reflects the government's approach to corporate taxes, incentives, infrastructure investment and sector-specific support. Investors also track the Budget closely for signals on fiscal discipline, borrowing plans and capital expenditure, all of which can sway market sentiment.