Union Budget 2026 LIVE: Cabinet clears Budget for FY27; focus on growth, fiscal prudence
Union Budget 2026–27 approved; FM Sitharaman to present 9th Budget with focus on growth, fiscal discipline and reforms amid global trade pressures.
Union Budget 2026 LIVE
The Union Cabinet has approved the Union Budget for 2026–27, setting the stage for Finance Minister Nirmala Sitharaman to present her ninth Budget in Parliament today. Notably, this marks the first time the Union Budget is being presented on a Sunday.
The Budget is widely expected to outline measures aimed at sustaining India’s growth momentum while maintaining fiscal discipline. It is also likely to include reform-oriented steps designed to shield the economy from global trade uncertainties, including tariff pressures from the United States.
Ahead of the presentation, Ms. Sitharaman was seen at the Finance Ministry in New Delhi along with Minister of State for Finance Pankaj Chaudhary and senior officials.
The policy direction of the Budget comes against the backdrop of the Economic Survey 2025–26, tabled in Parliament on January 29 by the Finance Minister. Authored by Chief Economic Advisor V. Anantha Nageswaran, the Survey projected India’s GDP growth for the current financial year (2025–26) at 7.4%, with a “nowcast” estimate of 7% for the third quarter (October–December 2025).
For 2026–27, the Survey has pegged growth in the range of 6.8% to 7.2%, while underscoring the need for fiscal flexibility at the Centre and cautioning States about deteriorating financial positions.
As Parliament awaits the Budget speech, attention remains on how the government balances growth support, fiscal consolidation, and structural reforms in an increasingly uncertain global environment.
Live Updates
- 1 Feb 2026 12:48 PM IST
Budget 2026 Live: Sensex Drops 1,600 Points
Sensex tumbles 1,600 points. Markets react sharply to fiscal announcements
Investors weigh impact on growth and deficit
- 1 Feb 2026 12:37 PM IST
16th Finance Commission
Rs. 1.4 lakh crore allocated to States for 2026-27.
Debt-to-GDP ratio: 55.6% (BE 2026-27)
Fiscal deficit: 4.3% of GDP (BE 2026-27)
Revised Estimates:
Non-debt receipts: ₹34 lakh crore
Total expenditure: ₹49.6 lakh crore
Budget Estimates 2026-27:
Non-debt receipts: ₹36.5 lakh crore
Total expenditure: ₹53.5 lakh crore
- 1 Feb 2026 12:24 PM IST
FM Announces Tax Relief, Lower TCS on Foreign Tours
Finance Minister Nirmala Sitharaman unveiled key tax and compliance measures in Budget 2026, focusing on relief for taxpayers and fiscal clarity. She announced that the TCS on foreign tour packages will be cut from 5% to 2%, while simplified income tax return forms will be introduced soon.
On the fiscal front, FY27 net market borrowings are pegged at ₹11.7 lakh crore, and net tax receipts are estimated at ₹28.7 lakh crore, outlining the government’s revenue and borrowing roadmap.
- 1 Feb 2026 12:21 PM IST
Tourism push: Key proposals announced
Finance Minister Nirmala Sitharaman announced a series of measures to strengthen India’s tourism ecosystem. She proposed ecological trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir; turtle trails in Kerala, Odisha and Karnataka; bird-watching trails along Pulicat Lake; and the development of 15 archaeological sites.
- 1 Feb 2026 12:12 PM IST
Promote medical-value tourism boost; new Ayurveda institutes announced
Finance Minister Nirmala Sitharaman outlined steps to position India as a global hub for medical-value tourism, including a scheme to help States establish five regional medical hubs in partnership with the private sector.
She also proposed measures to strengthen the healthcare workforce, including support for allied health practitioners and caregiver training.
On traditional medicine, she announced plans to set up three new All India Institutes of Ayurveda, upgrade AYUSH pharmacies, and enhance the WHO Global Centre for Traditional Medicine in Jamnagar.
- 1 Feb 2026 12:09 PM IST
Markets slip during Budget speech; Sensex, Nifty decline as FY27 fiscal deficit pegged at 4.3%
Equity benchmarks traded lower as Finance Minister Nirmala Sitharaman presented the Union Budget 2026, with investors reacting to key fiscal and policy signals. The Sensex and Nifty both slipped during the speech, reflecting cautious sentiment on Dalal Street.
The government projected a fiscal deficit of 4.3% of GDP for FY27, a figure closely watched by markets for cues on the pace of fiscal consolidation and borrowing needs in the coming year.
- 1 Feb 2026 12:04 PM IST
AI in focus: Govt plans high-powered panel to power services sector growth toward Viksit Bharat 2047
Aiming to make India a global leader in the services sector by 2047, Finance Minister Nirmala Sitharaman proposed setting up a high-powered committee to recommend measures to position the sector as a key growth driver for Viksit Bharat, with a focus on emerging technologies and AI.
- 1 Feb 2026 11:56 AM IST
Centre steps up infra push; public capex raised to ₹12.2 lakh crore
Reinforcing infrastructure as a core growth driver, Finance Minister Nirmala Sitharaman said the government will continue to prioritise development in Tier 2 and Tier 3 cities, particularly urban centres with populations above five lakh.
To back this push, she proposed an increase in public capital expenditure to ₹12.2 lakh crore, underscoring the Centre’s commitment to asset creation and long-term economic expansion.
She also announced the creation of an Infrastructure Risk Guarantee Fund, aimed at providing partial credit guarantees to lenders and improving financing access for infrastructure projects.
- 1 Feb 2026 11:53 AM IST
Markets volatile on (Special) Budget Day: Sensex slips 250 pts, Nifty flat; rail, defence, PSU banks in focus
Indian equity markets opened on a cautious note on Budget Day, with benchmark indices trading near the flatline before turning volatile during the Finance Minister’s speech. The Sensex fell about 250 points, while the Nifty moved in a narrow range, reflecting investor caution amid key policy announcements.
Sectoral action remained prominent, with railway, defence and PSU banking stocks drawing attention ahead of Union Budget 2026 announcements. MSME-linked counters also stayed on investors’ radar.
Among individual stocks, Meesho, Bajaj Auto, IDBI Bank and Delhivery were among the key names being closely tracked during the session.
- 1 Feb 2026 11:45 AM IST
Three-pronged plan to create champion MSMEs
Finance Minister Nirmala Sitharaman outlined a three-pronged strategy to build globally competitive MSMEs. The plan includes equity support through a ₹10,000 crore SME Growth Fund, a ₹2,000 crore top-up to the Self-Reliant India Fund, and liquidity support via the TReDS platform.
She also said the government will work with professional institutes to roll out short-term courses to create a cadre of “Corporate Mitras” to support MSME growth.
