LIVE updates:
11.30 am – FM emphasizes reforms and tables Finance Commission report
Union finance minister Nirmala Sitharaman said the government is prioritising reforms over rhetoric while presenting the Union Budget 2026–27 and tabled the 16th Finance Commission report outlining tax revenue devolution between the Centre and states for 2026–2031.
11.29 am – Capex proposed at Rs 12.2 lac crore for FY 2026-27
FM Sitharaman proposed increasing public capital expenditure to Rs 12.2 lac crore in 2026–27, announcing an infrastructure risk guarantee fund and accelerated asset monetisation through dedicated rights.
11.26 am – India will take confident steps towards Viksit Bharat
The finance minister reiterated that India will continue taking decisive steps towards becoming a Viksit Bharat.
11.24 am – ‘Reform express’ to keep government on track
Sitharaman said the government will press ahead with its reform agenda, highlighting over 350 initiatives including GST simplification, labour codes, quality control regulations, and deregulation efforts with states.
11.21 am – Action over ambivalence: six key interventions proposed
The finance minister outlined interventions across six areas, including scaling up manufacturing in seven strategic sectors, rejuvenating legacy industries, creating champion MSMEs, boosting infrastructure, ensuring stability, and developing city economic regions.
11.18 am – Four states to establish rare earth corridors
FM Sitharaman announced plans to support Odisha, Kerala, Andhra Pradesh and Tamil Nadu in establishing rare earth corridors, along with three dedicated chemical parks to enhance domestic production and reduce import dependence.
11.15 am – Semiconductor mission 2.0 launched
The government will expand India’s semiconductor sector under ISM 2.0, focusing on equipment production, design, supply chain fortification, and industry-led research and skill development.
11.13 am – Biopharma Shakti scheme announced
FM Sitharaman proposed the Biopharma Shakti scheme with a Rs 10,000 crore outlay to make India a global biopharma hub, including new NIPERs, upgraded institutes, 1,000 clinical trial sites, and strengthening regulatory oversight.
11.13 am – Union Budget 2026: People over populism, says FM Nirmala Sitharaman
Union finance minister Nirmala Sitharaman said the government has prioritised reform over rhetoric and people over populism, stressing that far-reaching structural reforms, fiscal prudence and monetary stability have been pursued while maintaining a strong thrust on public investment.
11:01 am: Union Budget 2026 proceedings begin in the Lok Sabha as finance minister Nirmala Sitharaman rises to present her ninth consecutive Budget.
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Earlier Report
Nirmala Sitharaman all set to present Union budget 2026
Daijiworld Media Network - New Delhi
New Delhi, Feb 1: Finance minister Nirmala Sitharaman is set to present her ninth Union Budget on Sunday, February 1, with the Centre expected to carefully balance higher growth ambitions with the need for fiscal consolidation amid global uncertainties.
For fiscal 2027, the world’s fastest-growing major economy is likely to prioritise defence, infrastructure, capital expenditure, power and affordable housing, while also outlining a clearer long-term economic roadmap.
This year’s Budget is expected to mark a departure from a long-followed convention. Traditionally, major policy intent has been laid out in Part A of the Budget speech, while Part B has largely focused on taxation. This time, Sitharaman is expected to use Part B to spell out a broader vision for India’s economic future, detailing both short-term priorities and long-term goals as the country advances further into the 21st century.
India’s economy has so far shown resilience despite external pressures, including punitive tariffs imposed by the United States under President Donald Trump. Growth for the year ending March 31 is projected at 7.4 per cent, supported by sustained government spending on infrastructure and earlier income and consumption tax measures that boosted consumer demand.
Rural development and agriculture are likely to receive special attention in Union Budget 2026. According to sources, additional allocations may be announced to expand employment opportunities in rural areas. The rural development ministry has sought a substantial increase in funding for the new employment guarantee programme, ‘Viksit Bharat – G Ram G’ (VB-G Ram G), proposing an outlay of Rs 1.51 lac crore, up from Rs 86,000 crore allocated to MGNREGS last year.
Continuing recent practice, the Budget will be presented in a paperless format, a system followed over the past four years. Sitharaman had, in her first Budget in 2019, replaced the traditional leather briefcase with a red cloth-wrapped ‘bahi-khata’ for carrying Budget documents.
On the fiscal front, the budgeted fiscal deficit for 2026 is estimated at 4.4 per cent of gross domestic product. Having reached a consolidation milestone with the deficit projected below 4.5 per cent, markets will closely watch for further signals on debt-to-GDP reduction.
Capital expenditure is expected to remain a key pillar of the government’s growth strategy. With capex for the current fiscal pegged at Rs 11.2 lac crore, the Budget is likely to retain its focus on infrastructure spending, with a possible 10 to 15 per cent increase in the capex target as private sector investment remains cautious.
The Budget may also propose measures to attract higher domestic and foreign investment. According to Reuters, the government is expected to consider easing norms to make it simpler for foreign companies to invest in defence firms holding existing licences.
Union Budget 2026 comes amid a complex global environment. While domestic demand has remained steady and inflation has moderated from recent highs, geopolitical tensions, volatile commodity prices and uneven monetary easing by major central banks continue to cloud the economic outlook.