Budget 2026: Sitharaman Charts Path for Viksit Bharat with Strategic Reforms
Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget today, unveiling a comprehensive roadmap to propel India towards its Viksit Bharat vision by 2047. The Budget, delivered on the auspicious occasion of Magha Purnima and the birth anniversary of Guru Ravidas, emphasized structural reforms, fiscal prudence, and inclusive growth. However, in a move that may disappoint many, the Finance Minister announced no changes to income tax slabs for individual taxpayers, maintaining the existing structure.
Three Kartavyas: The Guiding Principles
In her landmark speech, FM Sitharaman outlined three fundamental kartavyas or duties that form the cornerstone of Budget 2026-27:
- Accelerate and sustain economic growth while building resilience against volatile global dynamics.
- Fulfill the aspirations of citizens and enhance their capacity as partners in India's prosperity journey.
- Ensure equitable access to resources, amenities, and opportunities for every family, community, region, and sector.
The Finance Minister highlighted that this Budget is uniquely inspired by Yuva Shakti, drawing from innovative ideas shared during the Viksit Bharat Young Leaders Dialogue 2026 with Prime Minister Narendra Modi.
Strategic Economic Interventions
Under the first kartavya of accelerating growth, the Budget proposes targeted interventions across six critical areas:
- Scaling up manufacturing in seven strategic sectors including biopharma, semiconductors, electronics, rare earth magnets, chemicals, capital goods, and textiles.
- Rejuvenating 200 legacy industrial clusters to improve competitiveness.
- Creating "Champion MSMEs" through equity support, liquidity enhancement, and professional assistance.
- Boosting infrastructure with public capex increased to ₹12.2 lakh crore and new initiatives like Infrastructure Risk Guarantee Fund.
- Ensuring long-term energy security through Carbon Capture Utilization and Storage (CCUS) technologies.
- Developing City Economic Regions to amplify urban economic potential.
Building Capacity and Fulfilling Aspirations
The second kartavya focuses on human capital development with several groundbreaking initiatives:
- High-Powered 'Education to Employment and Enterprise' Standing Committee to transform India into a global services leader.
- Creation of Professionals for Viksit Bharat through upgraded Allied Health Professional institutions and new Regional Medical Hubs.
- Boost to AYUSH sector with new All India Institutes of Ayurveda and upgraded WHO Global Traditional Medicine Centre.
- Support for Orange Economy through AVGC Content Creator Labs in schools and colleges.
- Tourism promotion via new trekking trails, archaeological site development, and upskilling of guides.
- Khelo India Mission to transform sports sector over the next decade.
Inclusive Development and Fiscal Prudence
The third kartavya emphasizes inclusive growth with targeted measures:
- Bharat-VISTAAR, a multilingual AI tool for agricultural advisory support.
- SHE-Marts to empower rural women-led enterprises.
- Divyangjan empowerment through skill development and assistive technology access.
- Mental healthcare enhancement with new national institutes and upgraded facilities.
- Focus on Purvodaya States and North-East through industrial corridors and Buddhist circuit development.
On the fiscal front, the government continues its consolidation path with fiscal deficit estimated at 4.3% of GDP for 2026-27, down from 4.4% in the revised estimates for 2025-26. The debt-to-GDP ratio is projected to decline to 55.6%.
Tax Reforms and Simplification
While income tax slabs remain unchanged, the Budget introduces significant tax administration reforms:
- New Income Tax Act, 2025 to come into effect from April 1, 2026 with simplified rules and forms.
- Ease of living measures including reduced TCS rates for overseas education and medical purposes.
- Rationalization of penalty and prosecution frameworks to reduce litigation.
- Support for IT sector with enhanced safe harbor provisions and faster Advance Pricing Agreements.
- Attraction of global business through tax incentives for data centers and foreign experts.
The Budget also proposes customs duty rationalization to support domestic manufacturing, promote exports, and simplify tariff structures, while introducing measures for smoother customs processes and trust-based systems.
FM Sitharaman concluded her speech by reaffirming the government's commitment to transforming aspirations into achievements as India marches confidently toward becoming one of the world's largest economies.
