Introduction
- Presented by Finance Minister Smt. Nirmala Sitharaman in the new Kartavya Bhawan.
- The Budget is founded on three 'Kartavyas': Economic Growth, Fulfilling Aspirations, and Inclusive Development (Sabka Sath, Sabka Vikas).
- Aims to balance global integration with domestic resilience amidst volatile global dynamics.
Macro-Economic Indicators
Total Expenditure
₹53.5 Lakh Crore
Fiscal Deficit Target
4.3% of GDP
Net Tax Receipts
₹28.7 Lakh Crore
Capital Expenditure
₹12.2 Lakh Crore
Debt-to-GDP Ratio
55.6%
Strategic Economic Interventions
- Biopharma SHAKTI: Launch of a new strategy with an outlay of ₹10,000 crore to create a global biopharma hub.
- Electronics Push: Electronics Components Manufacturing Scheme outlay increased to ₹40,000 crore.
- Semiconductors: Launch of India Semiconductor Mission (ISM) 2.0 focused on Indian IP and supply chains.
- SME Growth: A dedicated ₹10,000 crore SME Growth Fund to create "Champion SMEs".
- Container Manufacturing: A new scheme with ₹10,000 crore allocation to boost domestic container production.
Infrastructure & Green Energy
- High-Speed Rail: Development of 7 Corridors including Mumbai-Pune and Delhi-Varanasi.
- Waterways: Operationalization of 20 new National Waterways over the next 5 years.
- Carbon Capture: Allocation of ₹20,000 crore for Carbon Capture Utilization and Storage (CCUS) technologies.
- City Development: ₹5,000 crore per city for developing City Economic Regions (CER).
Taxation Reforms & Ease of Living
- New Legislation: The New Income Tax Act, 2025 will be effective from April 1, 2026.
- Personal Imports: Customs duty on goods for personal use slashed from 20% to 10%.
- TCS Reduction: Tax Collected at Source on overseas tour packages reduced to 2%.
- IT Sector Relief: Safe harbour margin fixed at 15.5% with threshold increased to ₹2,000 crore.
- Foreign Cloud Services: Tax holiday provided until 2047 for foreign companies using Indian data centers.
Source Information
Original Source: Ministry of Finance via PIB Delhi.
Link: Read Official Highlights
Frequently Asked Questions
Q. What is the total budget expenditure estimated for 2026-27?
The total expenditure is estimated at ₹53.5 lakh crore.
Q. How is the budget supporting the Biopharma sector?
The government has launched Biopharma SHAKTI with an outlay of ₹10,000 crores and plans to set up 3 new NIPERs.
Q. What are the major changes in Customs Duty for individuals?
The tariff rate on dutiable goods imported for personal use has been reduced significantly from 20% to 10%.
Q. What is the new fiscal deficit target?
The fiscal deficit for BE 2026-27 is estimated to be 4.3% of GDP.
Q. Are there any benefits for students studying abroad?
Yes, the TCS rate for remittances related to education and medical purposes under LRS has been reduced from 5% to 2%.
