Union Budget 2026: Date, Expectations & Key Updates

Union Budget 2026: India's upcoming annual budget, scheduled for Sunday, February 1, 2026, is a significant event for the nation's economic future. Finance Minister Nirmala Sitharaman will deliver this important financial statement at 11 AM. This marks her ninth consecutive budget presentation, focusing on consistent growth and policy refinements.

Union Budget 2026 Key Highlights and Dates

The annual budget presentation is a major financial event. Its key details and timeline are important.

Union Budget 2025

India's Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, laid the groundwork for Viksit Bharat with a focus on employment, skilling, and middle-class relief.​ Key measures included rationalizing income tax slabs under the new regime up to ₹12 lakh tax-free, enhancing MSME credit guarantees to ₹10 crore, and launching schemes like PM Dhan-Dhaanya Krishi Yojana for agriculture.
Infrastructure got a major push via ₹10 lakh crore asset monetization, 100% FDI in insurance, and extensions like Jal Jeevan Mission to 2028 for universal tap water coverage. The budget emphasized consumption boost, manufacturing missions, and fiscal stimulus worth over ₹1 lakh crore through tax cuts and 10% capex growth.​

Union Budget 2026 India

The Union Budget 2026 India presentation on February 1 marks a crucial juncture for economic policy under Finance Minister Nirmala Sitharaman.​
Budget 2026 expects India to focus on sustained capex, fiscal prudence targeting sub-4.5% deficit, and Viksit Bharat@2047 milestones amid 7%+ GDP growth.​
Key priorities include infrastructure upgrades, MSME credit expansion, and green initiatives to bolster manufacturing and exports.​
Stakeholders await measures balancing welfare spending with long-term competitiveness in a dynamic global landscape.​

Union Budget 2026-27 Date

The Union Budget 2026-27 is scheduled for presentation on February 1, 2026, by Finance Minister Nirmala Sitharaman in the Parliament's Lok Sabha chamber.​ This date aligns with the constitutional tradition post the interim budget, allowing full fiscal planning for the upcoming financial year starting April 1.​ The session begins at 11:00 AM IST, with live telecasts on DD News, Sansad TV, and major news platforms for public access.​ Stakeholders anticipate detailed economic surveys and policy announcements on this key date.​

Union Budget 2026 Income Tax

Expectations for income tax in Union Budget 2026-27 focus on modest relief rather than major overhauls, building on FY25-26 changes that made income up to ₹12 lakh tax-free under the new regime via rebates. Experts anticipate hikes in standard deduction to ₹1-1.5 lakh from ₹75,000, alongside possible increases in Section 80C limits and LTCG exemption to ₹2 lakh for salaried taxpayers.Simplification of TDS slabs and compliance, plus joint taxation for couples, are likely to ease burdens without structural shifts.No big slab revisions are expected, prioritizing fiscal prudence amid strong adoption of the new regime.​

Union Budget 2026 Railway

Indian Railways eyes ₹2.8 lakh crore allocation in Union Budget 2026-27, a 10-12% rise from prior years, emphasizing project execution over new announcements.​ Capex will prioritize track doubling, electrification, safety upgrades, and capacity enhancement, targeting 80% on-time spending for fewer delays. Expectations include ₹20,000-25,000 crore private investment in freight corridors and terminals, plus signaling for Vande Bharat speeds. Funding for high-speed rail and rolling stock (₹50,000+ crore) aims to decongest routes and boost freight/passenger efficiency.​

Union Budget 2026 Tax Slab

Union Budget 2026 tax slabs are anticipated to see minimal changes, with the new regime maintaining stability post-FY25 revisions while the old regime remains untouched.​
Expectations center on minor tweaks for middle-income relief and inflation adjustments, reinforcing the new regime's popularity with its ₹12 lakh tax-free threshold via rebate u/s 87A.​

Key Expectations for the Upcoming Fiscal Year

Taxpayers have several key expectations from the upcoming financial plan. These proposals aim to provide financial relief and boost investment.

• An increase in the standard deduction for salaried employees from ₹75,000 to ₹1 lakh to counter inflation.

• Raising the Long-Term Capital Gains (LTCG) tax-free limit from ₹1.25 lakh to ₹2 lakh to encourage long-term investments.

• Enhanced health insurance deductions under Section 80D are anticipated, given medical inflation rates of 11-14%.

• Potential relief on home loan interest, particularly for first-time homebuyers.

• No major changes to existing income tax slabs are expected.

Unique Aspects of the 2026 Fiscal Plan

The upcoming fiscal plan stands out due to several unique circumstances and historical events. These aspects highlight its importance.

• Historic Sunday Presentation: The budget will be presented on a Sunday for the first time since the February 1 budget tradition began in 2017. This allows for special stock market trading sessions.

• Ninth Consecutive Budget by FM Sitharaman: This budget marks Finance Minister Nirmala Sitharaman's ninth consecutive budget. This achievement solidifies her role in India's economic recovery and transformation efforts.

• First Budget Under Income Tax Act 2025: While the new Income Tax Act becomes effective from April 1, 2026, this budget will establish the policy framework for India's updated tax structure. The focus will be on simplification and ease of compliance.

• Post-Major-Reform Consolidation: Following the extensive tax reforms of Budget 2025, this budget aims to consolidate gains and fine-tune policies rather than introduce dramatic new changes.