Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman Ninth Budget Today All Updates
Union Budget 2026 live updates bringing every key announcement as Finance Minister Nirmala Sitharaman presents the Budget.
Union Budget 2026 (PC- Social Media)
Union Budget 2026 Live Updates: The government has proposed cutting the customs tariff on all dutiable goods imported for personal use from 20% to 10%. The move is expected to reduce costs for individuals and encourage personal imports.
Finance Minister Nirmala Sitharaman told Parliament that the government has met its fiscal consolidation target announced in 2021–22 by bringing the fiscal deficit below 4.5% of GDP by 2025–26. The revised estimate for FY 2025–26 pegs the fiscal deficit at 4.4% of GDP, in line with budget projections. For FY 2026–27, the deficit is projected to decline further to 4.3% of GDP.
The Income Tax Act, 2025, will come into force from April 1, with the rules and income tax return forms set to be notified soon.
The Finance Minister also reinforced the government’s focus on public investment, proposing to raise capital expenditure to Rs 12.2 lakh crore in FY 2026–27.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the Union Budget presented by Nirmala Sitharaman.
Despite the impact of steep tariffs imposed by former US President Donald Trump, India’s economy has remained resilient. Economic growth is projected at 7.4% for the year ending March 31, driven by higher infrastructure spending and tax cuts on income and consumption that have supported consumer demand.
Earlier this week, Sitharaman tabled the Economic Survey of India for 2025–26 in Parliament. Considered the government’s official annual assessment of the economy, the survey provides a detailed, data-driven review of economic performance over the past year and outlines the broad policy direction for the period ahead.
Union Budget 2026: Defence Ministry Gets Rs 7.8 Lakh Crore Allocation
The Centre has earmarked Rs 7.8 lakh crore for the defence ministry in the Union Budget for 2026–27. Of this, Rs 2.19 lakh crore has been allocated under the Capital Outlay for the modernisation of the armed forces.
Overall, the defence budget has been increased by 15 per cent. Capital outlay for FY 2026–27 has been raised by 21.84 per cent, from Rs 1.80 lakh crore in FY 2025–26 to Rs 2.19 lakh crore, reflecting a strong push towards capability enhancement.
Several major defence procurement projects are in the pipeline, including contracts for Rafale fighter jets, submarines and unmanned aerial vehicles.
The Defence (Civil) budget has been marginally reduced by 0.45 per cent compared to last year’s allocation of Rs 28,554.61 crore. Meanwhile, allocations for Defence Services (Revenue) and Capital Outlay stand at Rs 3,65,478.98 crore and Rs 2,19,306.47 crore, registering increases of 17.24 per cent and 21.84 per cent, respectively.
The allocation for Defence Pensions has also been enhanced to Rs 1,71,338.22 crore.
To further support the defence manufacturing ecosystem, Finance Minister Nirmala Sitharaman announced a proposal to exempt basic customs duty on raw materials imported for manufacturing aircraft components used in maintenance, repair and overhaul operations within the defence sector.
Separately, the Finance Minister also proposed lowering the customs tariff on all dutiable goods imported for personal use from 20 per cent to 10 per cent, in response to global tariff pressures.
Union Budget 2026 Live Updates: Govt to Launch NIMHANS 2.0, Upgrade Mental Health Institutes
Union Finance Minister Nirmala Sitharaman on Sunday, February 1, announced the establishment of NIMHANS 2.0 and the upgradation of National Mental Health Institutes in Ranchi and Tezpur.
She noted that there are currently no national-level mental healthcare institutes in north India. To address this gap, the government will set up NIMHANS 2.0 and elevate the institutes in Ranchi and Tezpur as Regional Apex Institutions.
The Finance Minister also highlighted that medical emergencies often place a heavy financial burden on families, especially the poor and vulnerable. To improve emergency care, she said the government will expand capacity by 50% in district hospitals through the establishment of Emergency and Trauma Care Centres.
Budget 2026 Updates: Interest on Motor Accident Claims Made Tax-Free
In a major relief for accident victims, Finance Minister Nirmala Sitharaman has proposed that interest awarded by the Motor Accidents Claims Tribunal (MACT) to a natural person will be fully exempt from Income Tax. She also announced that no Tax Deducted at Source (TDS) will apply to such interest.
When a person is injured or loses their life in a road accident, the MACT grants compensation to the victim or their family. This compensation often includes interest for delays in payment. Until now, this interest was treated as taxable income, and TDS was deducted before the amount was paid.
Under the new proposal, any interest granted by MACT will be completely tax-free. This means victims or their families will receive the full interest amount, with no tax deductions and no TDS.
In simple terms, accident victims will no longer see their rightful compensation reduced due to taxes, offering much-needed financial relief at a time of distress.
Union Budget 2026: FM Proposes ‘She MARTS’, Girls’ Hostel in Every District
Finance Minister Nirmala Sitharaman on Sunday unveiled a set of initiatives in the Union Budget 2026 aimed at strengthening higher education and encouraging women-led entrepreneurship. Key proposals include the construction of a girls’ hostel in every district and the launch of community-owned retail outlets called She MARTS.
She said the government plans to set up new institutions, university townships, girls’ hostels and advanced telescope infrastructure to attract greater investment in higher education. A girls’ hostel will be established in each district to support women pursuing higher studies, especially in STEM fields such as astrophysics and astronomy, where long study hours and laboratory work often create accommodation challenges.
The Finance Minister noted that these hostels will provide safe and convenient housing, helping improve enrolment and retention of women in advanced scientific disciplines.
On the entrepreneurship front, Sitharaman announced She MARTS — self-help entrepreneur marts designed as community-owned retail platforms. Building on the success of the Lakhpati Didi programme, she said the initiative will help women transition from credit-based livelihoods to enterprise ownership by offering better market access, branding support and sustainable income opportunities.
She also outlined six key priorities of the Budget focused on long-term growth and stability: expanding manufacturing in strategic sectors, reviving traditional industries, nurturing champion MSMEs, accelerating infrastructure development, ensuring long-term security, and developing city-based economic regions.
Budget 2026 LIVE: Major IT Boost Announced by FM Sitharaman
In the Union Budget 2026, the government proposed a significant tax incentive package for the IT sector. Finance Minister Nirmala Sitharaman announced a tax holiday until 2047 for foreign companies that set up data centres in India to serve global markets. In addition, a safe harbour margin of 15% on cost will be available for companies providing data services from India to related entities.
Key proposals include: • All IT services to be consolidated under a single category with a uniform safe harbour margin of 15.5%. • The eligibility threshold for availing safe harbour benefits for IT services to be raised from ₹300 crore to ₹2,000 crore. • Approval of safe harbour for IT services to be implemented through an automatic, rule-based mechanism.
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman said her proposals on Customs and Central Excise are aimed at simplifying the tariff structure, supporting domestic manufacturing, enhancing export competitiveness, and correcting duty inversions.
She added that, as part of the effort to phase out long-standing customs duty exemptions, the government has proposed withdrawing certain exemptions on goods that are already being manufactured in India or where imports are minimal.
To make duty determination easier, the Finance Minister also proposed moving certain effective duty rates from customs notifications directly into the tariff schedule, thereby streamlining the process of identifying applicable rates.
Budget 2026: Govt to Create 1,000 Clinical Trial Sites; Bharat Vistar and She Marts Announced
Finance Minister Nirmala Sitharaman on Sunday said the government will set up a nationwide network of more than 1,000 accredited clinical trial sites, extending research infrastructure beyond major hubs such as Mumbai, Delhi, Bengaluru, Chennai and Hyderabad.
She also announced a credit-linked subsidy scheme for livestock farmer producer organisations, aimed at boosting employment and strengthening rural livelihoods.
In her Budget address, the Finance Minister introduced Bharat Vistar, a multilingual AI-based platform to integrate the agri-stack, and unveiled She Marts — community-owned retail outlets designed to support and empower local entrepreneurs.
Union Budget 2026: FM Proposes Launch of ‘Khelo India Mission’
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced plans to launch the Khelo India Mission to transform India’s sports sector over the next decade. She said the sports industry offers wide opportunities for employment, skill development and jobs, and the new mission will further strengthen the structured development of sporting talent initiated under the Khelo India programme.
Budget 2026: FM Sitharaman on Banking Reforms
The Finance Minister also proposed setting up a high-level committee on banking for Viksit Bharat. The committee will carry out a comprehensive review of the banking sector and align it with India’s next phase of economic growth, while ensuring financial stability, inclusion and consumer protection.
She further outlined a clear vision for NBFCs under the Viksit Bharat framework, with defined targets for credit expansion and technology adoption. As an initial step towards achieving scale and greater efficiency in public sector NBFCs, the government plans to restructure the Power Finance Corporation and the Rural Electrification Corporation.
Union Budget 2026: FM Sitharaman Unveils ‘India Semiconductor Mission 2.0’
While presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the rollout of India Semiconductor Mission (ISM) 2.0 with a total outlay of Rs 40,000 crore. The new phase aims to build on the progress made earlier and speed up the expansion of India’s semiconductor industry.
She said the initial phase of the mission helped strengthen the country’s semiconductor base, while ISM 2.0 will now focus on manufacturing equipment and materials, enabling end-to-end chip design, developing indigenous intellectual property, and strengthening supply chains.
The mission will also promote industry-driven research and training centres to boost innovation and create a strong pool of skilled professionals for the sector.
Alongside this, the Finance Minister introduced the ‘Shakti’ initiative, committing Rs 10,000 crore over five years to further strengthen and support India’s overall semiconductor ecosystem.
Union Budget 2026: Govt Chose Reforms Over Rhetoric, Says FM Sitharaman
Finance Minister Nirmala Sitharaman on Sunday said the government has focused on meaningful reforms rather than rhetoric while shaping India’s economic direction. Presenting the Union Budget for 2026–27 in the Lok Sabha, she said India will continue to take firm and forward-looking steps towards achieving the goal of a Viksit Bharat.
During her address, the Finance Minister also laid the 16th Finance Commission report before Parliament. The report details the framework for the sharing of tax revenues between the Centre and the states for the 2026–2031 period.
Union Budget 2026: Capital Expenditure Set at Rs 12.2 Lakh Crore for FY27
The Finance Minister announced a significant increase in public capital expenditure, proposing an allocation of Rs 12.2 lakh crore for the financial year 2026–27. She highlighted that public capex has risen sharply from Rs 2 lakh crore in 2014–15 to Rs 11.2 lakh crore in the Budget Estimates for 2025–26, and said the fresh hike aims to sustain this growth momentum.
To boost confidence among private developers during the infrastructure construction phase, she proposed setting up an Infrastructure Risk Guarantee Fund. This fund will provide prudently calibrated public credit guarantees to lenders.
She also noted that Infrastructure Investment Trusts (InvITs) have emerged as an effective tool for asset monetisation. To speed up the recycling of assets, the government plans to monetise major real estate holdings of CPSEs through dedicated InvITs.
Additionally, to encourage environmentally sustainable cargo movement, the Finance Minister proposed the development of new dedicated freight corridors, including a key corridor connecting Dankuni in the east to Surat.