2026 Union budget of India
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The Union Budget of India for 2026–27 was presented on 1 February 2026 in the Lok Sabha by Finance Minister Nirmala Sitharaman on behalf of the Third Modi ministry. The budget outlined the Government of India's fiscal policy, taxation proposals, and expenditure priorities for the financial year 2026–27.
| Annual Financial Statement of the Central Government for 2026–27; Finance Bill, 2026 | |
|---|---|
 Emblem of India | |
| Submitted | 1 February 2026 |
| Submitted by | Nirmala Sitharaman |
| Submitted to | Parliament of India |
| Presented | 1 February 2026 |
| Passed | Pending |
| Country | India |
| Parliament | 18th Lok Sabha |
| Government | Third Modi ministry |
| Party | Bharatiya Janata Party |
| Finance minister | Nirmala Sitharaman |
| Total revenue |  ₹36.5 lakh crore (non-debt receipts) |
| Total expenditures | ₹53.5 lakh crore |
| Program Spending | Capital expenditure ₹12.2 lakh crore |
| Deficit |  4.3% of GDP |
| Debt | 55.6% of GDP |
| Legislation | Finance Bill, 2026 |
| Website | https://www.indiabudget.gov.in |
|
‹ 2025 2027› | |
According to the Press Information Bureau (PIB), India's real GDP growth for 2025–26 was estimated at 7.4%, with nominal growth projected at 10% for 2026–27. Effective capital expenditure was budgeted at ₹17.15 lakh crore (US$180 billion) (4.4% of GDP), while the fiscal deficit target was reduced to 4.3% of GDP and central government debt was projected to decline to 55.6% of GDP.[1]
The budget emphasised infrastructure investment, domestic demand growth, and tax relief measures, including a full income-tax rebate for individuals earning up to ₹12.75 lakh annually. It also highlighted improvements in external trade performance and continued fiscal consolidation.[2][3]
Highlights
Infrastructure & Capital Expenditure
Manufacturing & Strategic Sectors
- The government announced the launch of India Semiconductor Mission 2.0 to strengthen domestic semiconductor manufacturing and supply chains. [6]
- The budget emphasised manufacturing-led growth with a focus on semiconductors, biopharma and critical minerals. [7]
- Rare earth corridors were announced in mineral-rich states to support strategic and advanced manufacturing. [8]
MSMEs & Entrepreneurship
- A ₹10,000 crore SME Growth Fund was announced to improve access to capital for micro, small and medium enterprises. [5]