Union Budget 2026-27: Latest news, live updates, and announcements

Prime Minister Narendra Modi hailed the Union Budget 2026 as historic, noting it empowers women, speeds up India’s reforms, and builds a solid foundation for future growth. In a video message, he said, “Today’s budget is historic. It reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat.”

Opposition leaders slammed the Modi government over the 2026-27 Union Budget, with Congress leader Jairam Ramesh describing it as “completely insipid” and “fell woefully short of the hype.”

West Bengal Chief Minister and Trinamool Congress supremo Mamata Banerjee termed the budget as “directionless” and “visionless.”

Meanwhile, Leader of the Opposition in the Lok Sabha, Rahul Gandhi, declined to comment on the Budget, saying, “I will speak tomorrow, using the platform provided by Parliament.”

Based on the Union Budget 2026, luxury goods, such as watches and imported alcohol, are set to attract higher customs duties.
Apart from that, the government also proposed to raise the penalty on misreported income to 100% of the tax amount, alongside new penalties for undisclosed movable assets. Moreover, Securities Transaction Tax (STT) would be hiked from 0.02% to 0.05% on options and futures.

Sitharaman proposed several customs duty changes in the Union Budget 2026 that would impact various goods and services for consumers and industries. Here's what will get cheaper:

1. Treatment for cancer and seven rare diseases: basic customs duty on 17 essential cancer drugs and medicines, as well as seven rare diseases, to be exempted.
2. Foreign tour packages: TCS rates on overseas tour packages to be reduced from 5-20% to 2%.
3. Overseas education, medical treatment: TCS on remittances under the LRS for education and medical purposes to be cut from 5% to 2%.
4. Microwave ovens: The government proposed a zero customs duty for goods used in manufacturing microwave ovens, lowering their prices.
5. Leather goods: Duty-free imports of certain specified inputs to boost the country's leather industry.
6. Solar glass ingredients, goods for nuclear power projects, and energy transition equipment to be exempted from basic customs duty.

During the Budget presentation, Sitharaman announced plans to set up the National Institute of Mental Health and Neuro Sciences (NIMHANS) 2.0 in North India. She said this move aims to address the lack of advanced national institutes for mental healthcare in the region. The government also plans to upgrade existing National Mental Health Institutes in Ranchi and Tezpur as Regional Apex Institutions.

The Union Budget 2026 proposed reducing the Tax Collected at Source (TCS) rates on remittances under the Liberalised Remittance Scheme (LRS) for education and medical purposes from 5% to 2%.

Finance Minister Sitharaman also announced SHE Marts in the Budget 2026 for women, a network of community-owned retail outlets run by self-help entrepreneurs. Building on the Lakhpati Didi programme, this initiative will empower rural women entrepreneurs to gain market access for their local products and achieve sustainable livelihoods. She also proposed setting up girls’ hostels in every district to boost higher education.

The Union Budget 2026-27 proposed allocating ₹7.8 lakh crore to the Ministry of Defence, with nearly 30%, or ₹2.19 lakh crore, dedicated to the modernization of the armed forces. This will support major projects in the pipeline, like Rafale fighter jets, submarines, and UAVs, to bolster India's military strength.

The BSE Sensex and NSE Nifty reportedly crashed in afternoon trade on Sunday after Finance Minister Sitharaman's Union Budget 2026 presentation. While Nifty 50 traded at 24,987.25 (down 431.65 points or 1.7%), Sensex stood at 81,417.93 (down 1,148.44 points or 1.39%). They remained deep in red, particularly due to a proposed Securities Transaction Tax hike on derivatives from 0.02% to 0.05%.

Finance Minister Sitharaman has concluded her ninth consecutive Union Budget presentation, marking the second of the Modi government's third term. Her speech lasted about 1 hour and 25 minutes. She introduced the Finance Bill in the Lok Sabha before concluding her speech. Subsequently, Speaker Om Birla adjourned the House until Monday.

Sitharaman also announced a key healthcare reform in the Union Budget 2026 to eliminate basic customs duty on 17 cancer drugs. This move aims to lower treatment costs and ease financial burdens for patients, enhancing access to vital medications.

In her Budget 2026 speech, the finance minister announced the government will launch the Mahatma Gandhi Gram Swaraj initiative to bolster khadi, handloom, and handicrafts in the country. She also proposed mega textile parks in "challenge mode" to accelerate growth in the textile ecosystem.

Sitharaman proposed extending the deadline for revising income tax returns from December 31 to March 31, with a nominal fee. She further announced staggered ITR filing timelines: ITR-1 and ITR-2 filers will continue to be filed till July 31, while non-audit businesses and trusts might have time until August 31.

Sitharaman proposed a scheme for small taxpayers with a rule-based automated process for obtaining lower or nil TDS certificates, instead of submitting applications to assessing officers.

Also, she announced that foreign nationals residing in India for up to five years will be exempt from taxes on their non-India-sourced earnings.

Moreover, interest awarded by motor accident tribunals to individuals will be exempt from income tax, ensuring victims receive the full benefit of their legal compensation.

In a major push to boost the country’s digital infrastructure, Sitharaman proposed a tax holiday until 2047 for foreign cloud service providers using data centers in India. She said this will help boost domestic data storage and processing capabilities, positioning India as a global digital infrastructure hub.

The finance minister said the Income Tax Act, 2025, will come into effect from April 1, 2026, introducing simplified rules, redesigned forms, and direct tax reliefs like reduced TCS rates and new exemptions. These changes aim to streamline compliance, lower burdens on transactions, and resolve ambiguities for individuals and service providers.

However, no new changes to the income tax slabs have been announced this time.

Sitharaman stated, "The government has accepted the 16th Finance Commission recommendations to retain the vertical share of devolution at 41%. I have allocated ₹1.4 lakh crore for states for FY2026-27."

During her Budget 2026 speech, Sitharaman announced Bharat Vistar, a multilingual AI-driven tool, to empower farmers. "This will enhance farm productivity, enable better decisions for farmers, and reduce risk by providing customized advisory support," she added.

Sitharaman announced that India has set a fiscal deficit target of 4.3% of GDP for FY27, down from an estimated 4.4% in FY26. The debt-to-GDP ratio is projected at 55.6% in FY27. "I have fulfilled my commitment made in FY22 to reduce India's fiscal deficit below 4.5% of GDP," she said.