Budget 2026 speech Highlights: Finance Minister Nirmala Sitharaman will deliver her ninth consecutive Budget speech at 11 am today, on 1 February (Sunday). This is the first time that the India Union Budget will be presented on a Sunday in at least a decade.
Expectations are high, as Union Budget 2026 will be the Prime Minister Narendra Modi-led government’s second full-fledged Budget, amid its third consecutive term in power. In 2025, Finance Minister Nirmala Sitharaman presented the interim Budget in February ahead of Lok Sabha elections, followed by the Union Budget 2025 in July after the government was voted to power.
Top announcements expected: What are the key sectors to look out for?
Key sectors to look out for this year include artificial intelligence, auto, defense, electronics, infrastructure, manufacturing, MSMEs, railways, renewable energy, and urban development among others. Besides this, other sectors such as agriculture, healthcare, logistics and tourism, are also likely to get allocations from the Centre.
How will Budget 2026 affect the common man?
Budget 2026 proposals will impact the common man both directly and indirectly. While announcements related to income tax, welfare schemes, and educational policies have a direct and visible impact, proposals for infrastructure and public services also influence daily life by improving facilities, boosting rural incomes and creating job opportunities over time.
Will the old tax regime be phased out?
Six years ago, Budget 2020 introduced a new tax regime offering lower tax rates to taxpayers who were willing to forego deductions and exemptions. Three years later, in Budget 2023, the government made it the default regime. In Budget 2025, the government went a step further, offering zero tax for individuals earning up to ₹12 lakh under the new regime. Each successive year has seen the new tax regime become more appealing, with reduced income tax rates, while the old regime remained unchanged.
As Budget 2026 is tabled today, all eyes are on Finance Minister Nirmala Sitharaman. Will the government finally retire the old tax regime? Some tax experts believe that while a complete phase-out may not happen immediately, the old tax regime could be made increasingly insignificant. nudging taxpayers to the new tax regime.
What hints did Economic Survey 2026 provide?
Tabled in Parliament ahead of the Budget speech, the Economic Survey sets the tone for India’s economic approach and provides a snapshot of the government’s assessment of the economy. The document this year was tabled by Sitharaman before both houses of Parliament on 29 January (Thursday).
Notably, prior to 1964, the Economic Survey was part of the Budget presentation and served as an official economic record to inform budgetary discussions in Parliament. From 1964 onwards, it was separated from the Union Budget to provide lawmakers and the public with important economic context, including data-driven views at the condition of the economy.
- Economic Survey 2026 projected FY26 growth at 7.4% as per the first advance estimates released earlier this month.
- While stating that the Indian economy is expected to expand at 6.8-7.2% in FY27, supported by strong macro fundamentals and a series of regulatory reforms, as per the Economic Survey 2025-26.
- The survey also found that India’s core and headline inflation rates are likely to be higher in FY27 than in FY26. However, it is unlikely to be a concern.
- As of November 2025, India’s fiscal deficit stood at 62.3% of the Budget Estimates, and the government aims to attain a fiscal deficit target of 4.4% of GDP by FY26, the survey noted.
- It also projected real GDP growth in FY27 in the range of 6.8 to 7.2%. “The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism,” it stated.
What were the key highlights of Budget 2025
In last year’s Budget 2025, Sitharaman gave a mega boost to Indian taxpayers by cutting income tax on earnings up to ₹12 lakh, benefitting millions of middle-class taxpayers.
For the salaried class, the non-taxable income under the new tax regime increased to ₹12.75 lakh after standard deduction. She also announced the New Income Tax Act, 2025, which will come into effect from 1 April.
A look at expenditure of major items from Budget 2025
- Agriculture and Allied Activities: ₹1,71,437 crore
- Commerce & Industry: ₹65,553 crore
- Defence: ₹4,91,732 crore
- Education: ₹1,28,650 crore
- Energy: ₹81,174 crore
- Health: ₹98,311 crore
- Home Affairs: ₹2,33,211 crore
- IT and Telecom: ₹95,298 crore
- Rural Development: ₹2,66,817 crore
- Social Welfare: ₹60,052 crore
- Scientific Departments: ₹55,679 crore
- Urban Development: ₹96,777 crore
Follow LiveMint’s blog for all key highlights on the Union Budget 2026-27.