Budget 2026 Expectations Highlights: Will FM Sitharaman's Budget take cues from Economic Survey's policy prescriptions? Capex, income tax measures in focus

Budget 2026 Expectations Highlights: On February 1, 2026, Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget, setting a record of sorts. Budget 2026 is being looked at for multiple reasons: India is the fastest growing major economy, but will its growth story be dented by the global issues - both geopolitical and the ongoing tariff war started by US President Donald Trump. Taxpayers, industry, startups are looking at more relief measures. Ahead of her Union Budget speech, FM Sitharaman tabled the Economic Survey 2025-26 in Parliament on January 29. The Economic Survey serves as a policy guideline document for the Budget, and it has reaffirmed faith in India’s growth story, while striking a note of caution on the impact of global headwinds. What will FM Sitharaman’s Union Budget do to protect India’s economy and move it forward on the road to reforms? Track TOI’s live coverage for the latest from Budget 2026 expectations:

09:20 (IST) Jan 30

Budget 2026 Expectations Live: Promote enterprise-grade HR

“HRMS and payroll systems are no longer back-office tools — they are the digital backbone of India’s workforce. If the Budget recognises this and promotes enterprise-grade HR and payroll technology adoption, especially among MSMEs, it will directly improve tax compliance, social security coverage and employee trust across the economy,” says Subramanyam S, CEO, AscentHR.

09:11 (IST) Jan 30

Budget 2026 Expectations Live: What insurance sector wants

“India’s insurance distribution ecosystem is entering a phase, supported by regulatory reforms and accelerating tech adoption. The increase in the FDI cap to 100% and the enactment of the Sabka Bima Sabki Raksha Act reflect a clear intent to deepen insurance penetration and strengthen distribution capabilities. As we look ahead to Budget 2026, incremental policy support for technology-led distribution models further accelerate access to insurance. Digital infrastructure, API-led partnerships, embedded insurance, and the POSP model are enabling scalable, cost-efficient distribution while preserving local trust. These shifts are critical to expanding protection across underserved and underpenetrated markets in India,” says Dhirendra Mahyavanshi’s, Chairperson, MD & CEO of Turtlemint.

Budget Expectations 2026 Highlights: Ahead of the Parliament’s Budget session Prime Minister Narendra Modi spoke of India’s ‘Reform Express’ and said that the focus would be on solving long-term problems. After the tabling of the Economic Survey, PM Modi also hailed it as a ‘guide informed policymaking and reinforce confidence in India’s economic future.’ Union Budget was traditionally presented on February 28, but this practice was changed during the first tenure of the Narendra Modi government. From 2017, the Budget is presented on February 1, giving all ministries and departments more headroom to plan their expenditures for the next financial year. At the same time, the government also stopped the presentation of a separate Railway Budget. The Union Budget is an important policy roadmap of the government each year, setting the tone and direction for the focus areas of the next fiscal, while at the same time looking at fiscal consolidation and fiscal deficit targets.