New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget for 2026-27 today, introducing a strategic plan built on three core duties, or "Kartavyas." This budget marks the first to be prepared in the newly named Kartavya Bhawan. It focuses on accelerating economic growth, fulfilling the aspirations of the people, and ensuring inclusive development for every community. 
Union Budget 2026-27: Top Highlights and Tax Changes Explained


Economic Goals and Financial Estimates

The government aims for a steady economic path. For the coming year, total expenditure is estimated at ₹53.5 lakh crore, while non-debt receipts are expected to be ₹36.5 lakh crore. The government plans to reduce the fiscal deficit to 4.3 percent of GDP, showing a commitment to financial discipline. Public capital expenditure will rise to ₹12.2 lakh crore to boost the nation’s infrastructure.

Support for Industry and Technology

The budget introduces several interventions to make India a global manufacturing hub:
  • Biopharma: A new scheme called "Biopharma SHAKTI" will receive ₹10,000 crore over five years to advance healthcare technology.
  • Semiconductors: The government will launch India Semiconductor Mission 2.0 to strengthen local supply chains and design.
  • Manufacturing: To support small businesses, a ₹10,000 crore SME Growth Fund will help small and medium enterprises become industry leaders.
  • Textiles: New "Mega Textile Parks" and the Mahatma Gandhi Gram Swaraj initiative will modernize traditional weaving and handicrafts.

Infrastructure and Transport

The government plans to build seven new High-Speed Rail corridors, including routes like Mumbai-Pune and Delhi-Varanasi. To improve trade, new Dedicated Freight Corridors will connect the East and West coasts. Additionally, 20 new National Waterways will open over the next five years to move cargo more efficiently.

Benefits for Citizens and Taxpayers

The budget brings significant changes to the tax system to improve the "Ease of Living." A brand-new Income Tax Act will take effect in April 2026, featuring simpler rules and redesigned forms.
Key tax highlights include:
  • Medical Relief: 17 essential drugs are now exempt from customs duty.
  • Travel and Education: Tax Collection at Source (TCS) on overseas tour packages and foreign education loans will drop to 2 percent. 
  • Investment: To encourage stock market stability, the Security Transaction Tax (STT) on futures and options will increase.
  • Small Taxpayers: A one-time six-month window will allow citizens to disclose overseas income without heavy penalties.

Focus on Education and Health

The government plans to add 100,000 allied health professionals and establish five regional medical hubs to promote medical tourism. For students, the budget proposes creating five "University Townships" near industrial areas and building a girls' hostel in every district.
Through these measures, the 2026-27 Budget seeks to balance industrial progress with social welfare, aiming to turn India into a developed nation by 2047.