In response to criticism from Leader of the Opposition Rahul Gandhi regarding the Union Budget 2026-27, Finance Minister Nirmala Sitharaman asserted the strength of the Indian economy and the government's commitment to its citizens. Speaking at a post-Budget press conference on February 1, 2026, Sitharaman addressed Gandhi's remarks, questioning what "course correction" he was referring to, given the robust fundamentals of the economy.
Sitharaman highlighted the various schemes and initiatives implemented by the government to support small and medium enterprises, textiles, leather industries, and people working in rural areas. She emphasized the government's focus on benefiting farmers and women entrepreneurs, ensuring they are shielded from the volatility stemming from global uncertainties. According to her, these efforts have been largely successful, citing the Lakhpati Didi scheme as an example.
Earlier in the day, Sitharaman presented her ninth consecutive budget in the Lok Sabha, a historic moment as it was the first time a Union Budget was presented on a Sunday. Her speech, lasting nearly an hour and a half, outlined the government's economic roadmap. A key announcement was the approximately 9% increase in capital expenditure, raising the allocation to ₹12.2 lakh crore for the upcoming financial year. The defense sector also received a boost with an increased allocation of ₹7.84 lakh crore, reflecting a strong push for military modernization.
The Finance Minister articulated that the budget was inspired by "three Kartavyas" or duties: accelerating economic growth, fulfilling the aspirations of the people, and ensuring access to resources and opportunities for all families and sectors. She stressed the importance of structural reforms and a supportive ecosystem to achieve these goals.
Sitharaman also announced the implementation of the New Tax Act from April 1, 2026, while income tax slabs remained unchanged. She projected the fiscal deficit to be at 4.3% of GDP in 2026-27, lower than the 4.4% projected for the current financial year. The total size of the Union Budget 2026-27 is pegged at ₹53.5 lakh crore.
In response to the budget, Rahul Gandhi stated that the budget lacked course correction and ignored the real crises faced by India. He pointed to issues such as unemployment, struggling manufacturing, and farmer distress. Other opposition leaders echoed similar sentiments, with the Congress party dubbing the budget as "disappointing" and "lacking specifics". Rahul Gandhi initially declined to offer immediate comments, stating he would address the budget on the floor of the Parliament.