Budget 2026 Live Updates: 10 key things individual taxpayers should know

Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman announced the launch of the India Semiconductor Mission (ISM) 2.0, with an outlay of Rs 40,000 crore, aimed at building on the gains of the earlier phase and accelerating growth in the semiconductor sector.

She said the first phase of the mission had strengthened India’s semiconductor capabilities, and ISM 2.0 would now focus on manufacturing equipment and materials, enabling full-stack chip design, developing domestic intellectual property, and reinforcing supply chains.

The programme will also support industry-led research and training centres to drive technological advancement and create a skilled talent pipeline for the sector.

In addition, Sitharaman unveiled the ‘Shakti’ initiative, allocating Rs 10,000 crore over five years to further deepen and support the broader semiconductor ecosystem in the country.

Finance Minister Nirmala Sitharaman on Sunday said the government would press ahead with its reform agenda. Presenting her ninth consecutive Budget, she noted that the “reform express” remains on track and will keep up its momentum as the government works to fulfil its duties. “Our government has undertaken comprehensive reforms towards creating employment, boosting productivity and accelerating growth.After the Prime Minister's announcement on Independence Day in 2025 over 350 reforms have been rolled out. This includes GST simplification, notification of labor codes and registration of mandatory quality control orders. High level committees have been formed. And in parallel, the central government is working with the State governments on deregulation and reducing compliance requirements,” she said.

FM Sitharaman is set to present the Budget in Lok Sabha from 11 am

• Fiscal deficit: FY26 is at 4.4 per cent of GDP; markets are looking for a FY27 target near 4 per cent and a clearer debt-reduction path.
  

• Capital expenditure: From Rs 11.2 lakh crore in FY26, capex could rise 10–15 per cent, possibly crossing Rs 12 lakh crore.
  

• Borrowing & debt: Gross borrowing and the roadmap to lower the debt-to-GDP ratio will be in focus.
  

• Tax & GST revenue: FY27 projections will show how strong revenue growth remains after recent tax changes.
  

• Nominal GDP: Assumptions of around 10.5–11 per cent growth will guide fiscal calculations.
  

• Dividends & subsidies: RBI surplus transfers and food subsidy outgo are key variables, along with allocations for major schemes and social sectors.

As Nirmala Sitharaman prepares to present her ninth consecutive Union Budget, her tenure since 2019 reflects key milestones that mirror India’s shifting economic priorities.

She made history in 2019 as India’s first full-time woman Finance Minister, replacing the colonial briefcase with a traditional red bahi-khata and signalling a break from old conventions.

In 2020, she delivered the longest Budget speech on record, introducing a new optional income tax regime and unveiling the National Infrastructure Pipeline.

The 2021 Budget, presented during the pandemic, placed strong emphasis on healthcare and infrastructure, structured around six strategic pillars for recovery and growth.

In 2022, she laid out a long-term vision for Amrit Kaal, backing it with a sharp rise in capital expenditure to drive infrastructure-led development.

The 2023 Budget introduced the government’s Saptarishi priorities, focusing on inclusive growth, green development and investment momentum.

In 2024, she first presented an Interim Budget before elections and later a full Budget, continuing welfare and infrastructure focus.

Her 2025 Budget centred on four groups — the poor, youth, farmers and women — while pushing structural reforms.

Now, in 2026, Sitharaman stands on the brink of setting a new record, with nine straight Budgets underscoring policy continuity and reform momentum.

Union finance minister Nirmala Sitharaman on Sunday opted for a handwoven Kancheevaram silk saree from Tamil Nadu ahead of presenting the Union Budget 2026 in Parliament. For her record ninth consecutive Budget, the choice reinforced a sartorial tradition that has gradually evolved into a cultural statement.

The saree featured a purple *kattam* (checked) body with light golden-brown checks, a coffee-brown border with delicate thread work, and a mustard-gold *pallu* highlighted with violet and gold borders. She paired the drape with a woollen shawl.

Renowned for their rich silk and intricate craftsmanship, Kancheevaram sarees are among India’s most celebrated handlooms. A native of Tamil Nadu, Sitharaman’s choice was seen as a tribute to her home state, which is headed for Assembly elections later this year.

The finance minister has consistently used her Budget Day attire to spotlight handwoven fabrics and artisan-made crafts. Since her first Budget in 2019, when she wore a bright pink Mangalagiri saree, Sitharaman has showcased handlooms from across the country.

Her subsequent choices have included a yellow-gold silk saree in 2020, a Pochampally Ikat in 2021, Odisha’s Bomkai in 2022, Karnataka’s Ilkal in 2023, and two distinct weaves in 2024—a Mangalagiri silk saree for the full Budget and a blue Tussar silk saree with Kantha embroidery for the interim session.

Union finance minister Nirmala Sitharaman will present the Union Budget for the 2026–27 financial year in the Lok Sabha at 11 am today, marking her ninth consecutive Budget. While the focus will remain on government revenue projections, fiscal discipline, and spending priorities, Sitharaman’s Budget Day appearance also draws attention for her choice of attire.

Continuing her tradition of wearing handloom sarees, the finance minister uses the high-profile occasion to highlight India’s traditional textiles and support artisan communities, in line with the government’s “Vocal for Local” initiative. This year, she chose a deep maroon Kanjeevaram saree from Tamil Nadu, featuring a rich maroon base with a contrasting border and subtle gold detailing, paired with a yellow blouse.

With the Union Budget 2026 just hours away, Finance Minister Nirmala Sitharaman is expected to use Part B of her speech to outline a broader, long-term vision for investors.

Traditionally focused on taxation, Part B may take on a more strategic role this year, moving beyond routine tax proposals to address both near-term priorities and long-term structural goals. According to sources cited by

The Economic Times

, the section could present a clearer picture of the government’s economic thinking amid shifting global and domestic conditions.

“The idea is to lay out a broader, long-term vision,” a government official told ET.

The shift comes against the backdrop of geopolitical uncertainty and higher US tariffs, with the government keen to reassure foreign investors about India’s stability, growth prospects and policy direction. The approach also echoes themes from the recent Economic Survey, which stressed the need to strengthen the investment climate while highlighting India’s macroeconomic resilience and long-term potential.