Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, emphasizing that it is a "Yuva Shakti"-driven budget with a strong focus on the poor, underprivileged, and disadvantaged sections of society. Sitharaman, presenting her ninth consecutive budget, highlighted that the government's "sankalp" (resolve) is to prioritize these vulnerable populations.
The budget is inspired by three "Kartavyas" (duties):
- Accelerating Economic Growth: Sustaining economic growth by enhancing productivity, improving competitiveness, and building resilience against global challenges. This involves implementing reforms to boost employment and productivity levels.
- People-Centric Development: Fulfilling the aspirations of the citizens and building their capabilities, empowering them to be strong partners in India's progress. Skill-building, employment generation, and human capital development are key components of this Kartavya.
- Inclusive Access to Opportunities: Ensuring every family, community, region, and sector has access to resources, amenities, and opportunities for meaningful participation, aligning with the motto of "Sabka Saath, Sabka Vikas" (Collective Effort, Inclusive Growth).
To deliver on these objectives, the government aims to create a supportive ecosystem. Sitharaman stressed the need to improve efficiency and enhance the economy's capacity to withstand external shocks.
The Union Budget 2026-27 proposes a substantial capital expenditure target of ₹12.2 lakh crore for the fiscal year 2027. Public capital expenditure has seen a significant increase, rising from ₹2 lakh crore in 2014-15 to ₹11.2 lakh crore in the budget estimate for 2025-26.
Several key proposals were made in the budget:
- A ₹10,000 crore investment in biopharma over the next 5 years, under the "BioPharma Shakti" program, aimed at making India a global biopharma manufacturing hub. This initiative seeks to promote affordable healthcare for chronic illnesses like diabetes, cancer, and autoimmune disorders.
- A ₹10,000 crore SME Growth Fund to incentivize SMEs based on select criteria.
- A new scheme to promote container manufacturing with a budgetary allocation of ₹10,000 crore over five years.
- Development of seven high-speed rail corridors between major cities to improve inter-city mobility and support regional growth.
- Restructuring of NBFCs (non-banking finance companies) into larger, stronger entities.
Furthermore, the budget aims to broaden equity market participation and capital inflows by permitting individual persons resident outside India (PROI) to invest in equity instruments and increasing the investment limit for individual PROIs.
The Finance Minister also tabled the 16th Finance Commission report, outlining the framework for tax revenue devolution between the Centre and the states for the 2026–2031 period.
The presentation of the Union Budget 2026-27 marks the first time in India's history that the budget has been presented on a Sunday.
