Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 in Parliament today, February 1, 2026. This marks her ninth consecutive budget presentation, a record for any Finance Minister. The budget is expected to outline the government's fiscal strategy, economic priorities, and policy direction for the upcoming fiscal year.

The presentation is particularly significant as India navigates a complex global trade environment, with uncertainties such as US tariffs impacting the economic landscape. The Budget session, which commenced on January 29, 2026, is scheduled to have 30 sittings over 65 days, concluding on April 2, 2026. There will be a recess from February 13 to March 9 to allow Standing Committees to examine the Demands for Grants of various Ministries.

Capital expenditure is expected to be a major focus of Budget 2026, with projections of allocations reaching ₹12.04 lakh crore, nearly 3% of GDP. The government is likely to continue its infrastructure-led growth model, prioritizing sectors like roads, railways, urban development, green energy, and AI-driven infrastructure. Defence spending is also expected to see a substantial rise, potentially increasing to ₹2.3 lakh crore in FY26 from ₹1.8 lakh crore in FY25.

The Economic Survey 2026, presented ahead of the budget, projected India's economy to grow between 6.8% and 7.2% in FY27, supported by stable macro fundamentals and ongoing regulatory reforms. While both core and headline inflation are expected to rise slightly compared to FY26, inflationary pressures are not expected to pose a significant risk. The government is aiming for a fiscal deficit of 4.4% of GDP by FY26, reinforcing its commitment to fiscal consolidation.

Key expectations from Budget 2026 include:

• Income Tax: Major slab relaxations under the new regime are considered unlikely, with the government favoring stability in direct taxes.
• MSMEs: Enhanced credit access, stronger guarantees, and better last-mile delivery of support.
• Healthcare: Potential for lower customs duties, PLI push, and boosts for rural and digital healthcare.
• Agriculture: Increased spending, with a focus on productivity and storage.
• Real Estate: Possible stamp duty relief and a wider definition of affordable housing.
• AI & Deep Tech: Incentives for AI, robotics, and digital infrastructure.

The budget is expected to prioritize fiscal prudence, high capex, and targeted sectoral support amidst global uncertainties. Key sectors to watch include infrastructure, defence, urban development, AI, and renewables. Manufacturing and MSMEs are also expected to receive incentives to boost local production and support small businesses. It's likely the budget will rely on a recovery in consumption and private investment to drive growth, while maintaining moderate capex growth. Areas like defence, green energy, urban infrastructure and manufacturing are expected to see clear preference.

The presentation of the Union Budget 2026 will be broadcast live on Sansad TV at 11 AM.