On February 1, 2026, Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget.
We have pursued far-reaching structural reforms, fiscal prudence and monetary stability whilst maintaining a strong thrust on public investment.
Fiscal Overview
Total Expenditure: ₹53.5 Lakh Crore. Capital Expenditure: ₹12.2 Lakh Crore (+9%). Fiscal deficit target: 4.3% GDP. Debt-to-GDP target: 50% by 2031.
Key Initiatives
Biopharma SHAKTI with ₹10,000 crore. ISM 2.0 for semiconductor IP. Electronics expanded to ₹40,000 crore. Defence at ₹7.84 lakh crore (+15%).
Tax Reforms
New Income Tax Act effective April 1, 2026. MAT reduced to 14%. ₹10,000 crore SME Growth Fund.