Budget 2026 Live: FM Nirmala Sitharaman Presents Historic Ninth Consecutive Budget
Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 in Parliament today, February 1, 2026. This marks a significant moment as it is the first time the Budget is being presented on a Sunday. This budget represents Sitharaman's ninth consecutive presentation, establishing a remarkable record in India's fiscal history. The Budget speech is scheduled to commence at 11:00 AM.
Budget 2026: A Crucial Financial Statement Amid Global Uncertainty
The Union Budget serves as the government's primary financial statement, outlining sectoral allocations and providing a reform roadmap for the upcoming fiscal year. This year's budget arrives at a critical juncture, with the global economy grappling with unprecedented uncertainty. India faces additional challenges, including 50% tariffs imposed by its largest single-country trading partner, the United States, under President Donald Trump's administration.
FM Sitharaman's budget is anticipated to detail India's strategy to shield itself from the ongoing global trade war while maintaining its status as the world's fastest-growing major economy. Income taxpayers are particularly keen to learn about the latest income tax slabs for FY 2026-27 and potential tax relief measures.
Key Focus Areas and Sectoral Expectations
The Budget is expected to prioritize several critical sectors:
- Infrastructure: Continued capital expenditure push for Indian Railways and roadways, following record allocations in previous budgets.
- Defence: Increased budget allocation in light of geopolitical tensions and border risks, with a focus on indigenous weapons development.
- Manufacturing & Exports: Measures to boost export competitiveness, diversify markets, and enhance domestic manufacturing through PLI schemes.
- MSMEs & Startups: Relief measures and ease of doing business initiatives to support small businesses and entrepreneurial ventures.
- Agriculture & Healthcare: Enhanced allocations for agricultural development and healthcare infrastructure.
- Education & Job Creation: Focus on upskilling, education reforms, and employment generation to address unemployment challenges.
Expert Insights and Recommendations
Economists and industry experts have shared their perspectives on Budget 2026 priorities:
Yuvika Singhal, Economist at QuantEco, emphasizes strengthening manufacturing competitiveness through new labour codes and enhanced PLI scheme allocations. She suggests linking fiscal incentives with job creation to boost employment.
Dr D.K. Srivastava, Chief Policy Advisor at EY India, highlights unemployment as India's most pressing issue. He advocates for increased focus on education, private investment attraction through PLI schemes, and credible fiscal consolidation to attract foreign investment.
Tax Reforms and Compliance Measures
The budget is expected to address several tax-related matters:
- New Income Tax Act 2025: Detailed guidelines and FAQs for smooth transition from the 1961 Act to minimize confusion and litigation.
- General Anti Avoidance Rule (GAAR): Need for comprehensive guidance on statutory GAAR application, including case studies and clarity on judicial GAAR interplay.
- Customs Advance Rulings: FICCI recommends expanding CAAR offices beyond Delhi and Mumbai to cover southern and eastern regions, and extending ruling validity through self-declaration mechanisms.
Global Economic Context and India's Position
According to FICCI analysis, the global economy shows resilience despite pandemic aftermath, geopolitical tensions, and inflationary pressures. However, rising protectionist measures and supply chain disruptions pose significant downside risks. India's budget must navigate these challenges while capitalizing on its growth momentum.
India's economy continues to defy expectations, positioning itself to become a $5 trillion economy and potentially the world's third-largest. Budget 2026 is expected to outline the roadmap toward these milestones while aiming for long-term $10 trillion economy goals.
Budget Session Timeline and Economic Survey Insights
The Parliament's Budget session commenced on January 28, 2026, with the first phase concluding on February 13, 2026. The second phase will resume on March 9, 2026. The Economic Survey, tabled on January 29, 2026, reaffirms confidence in India's growth story while emphasizing the need for sustained reforms and delayed gratification.
Prime Minister Narendra Modi has emphasized continuous reforms, focusing on Make in India and Atmanirbhar Bharat initiatives. The budget is expected to reflect this vision through macroeconomic stability measures, growth-oriented policies, and fiscal deficit control.
As India stands as a crucial growth engine for the world, Budget 2026's announcements will shape the nation's economic trajectory amid complex global dynamics.
