Daijiworld Media Network - New Delhi

New Delhi, Feb 1: Finance minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27 in Parliament, projecting Gross Tax Revenue (GTR) at Rs 44.04 lac crore, marking an 8% increase over the revised estimate for 2025-26. Direct taxes, including corporate and personal income tax, are expected to contribute Rs 26.97 lac crore, accounting for 61.2% of total GTR, while indirect taxes are estimated at Rs 17.07 lac crore.

The GTR-to-GDP ratio for 2026-27 is projected at 11.2%, coinciding with the first year of the Sixteenth Finance Commission’s award period, which recommends maintaining states’ share of devolution at 41% of the divisible pool. Net tax revenues to the Centre are expected at Rs 28.67 lac crore, while non-tax revenues are estimated at Rs 6.66 lac crore, bringing total revenue receipts to Rs 35.33 lac crore—a 5.7% rise over the revised 2025-26 figures.

Total expenditure is projected at Rs 53.47 lac crore (13.6% of GDP), up 7.7% from 2025-26. Capital expenditure is set at Rs 12.22 lac crore (3.1% of GDP), including Rs 2 lac crore in Special Assistance as Loans to States for Capital Investment (SASCI). Grants-in-aid for capital creation are estimated at Rs 4.93 lac crore (1.3% of GDP), bringing effective capital expenditure to Rs 17.15 lac crore, or 4.4% of GDP, aimed at boosting the country’s productive capacity.

The Budget underscores a focus on investments that enhance infrastructure, capital formation, and economic growth while maintaining fiscal prudence and supporting state development initiatives.