BUDGET 2026 LIVE: Nirmala Sitharaman Presents Union Budget for 2026-27

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026–27 in Parliament today, outlining the government’s roadmap for economic growth, digital expansion, and industry development. Expectations are high from the IT sector, MSMEs, startups, and enterprises, particularly around taxation, digital infrastructure, AI, semiconductor manufacturing, and ease of doing business. Follow our live blog for real-time updates, expert insights, and key announcements as they happen.

Finance Minister Nirmala Sitharaman met President Droupadi Murmu at Rashtrapati Bhavan ahead of presenting the Union Budget 2026–27. In keeping with tradition, the President offered her sweetened curd and sugar, a gesture symbolising good wishes before an important occasion.

Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget in Parliament today, marking another milestone in her tenure.

FM Sitharaman Meets President Murmu Ahead of Budget Presentatio

Watch Live: Budget Presentation by Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has begun presenting the Union Budget 2026–27 in Parliament. The address is expected to outline the government’s reform agenda and growth strategy under the Narendra Modi-led administration.

Finance Minister Nirmala Sitharaman said the government has prioritised meaningful reforms over rhetoric while presenting the Union Budget 2026–27. She stated that this approach has helped India maintain a GDP growth rate of 7.2% despite ongoing geopolitical challenges.

The Finance Minister underlined the government’s commitment to sustained reforms and long-term economic stability.

Finance Minister Nirmala Sitharaman said that Union Budget 2026–27 is inspired by three key ‘Kartavya’ that will guide the government’s development agenda.

The Three Kartavya Are:

1️⃣ Sustaining Economic Growth
To accelerate and sustain economic growth by enhancing competitiveness and building resilience against volatile global dynamics.

2️⃣ Empowering Citizens
To fulfil the aspirations of people by building their capacity and making them strong partners in India’s journey towards prosperity.

3️⃣ Inclusive Development
To uphold the principle of ‘Sab Ka Saath, Sab Ka Vikas’ by ensuring that every family, community, and region has access to resources, amenities, and opportunities for meaningful participation.

The Finance Minister said these guiding principles will shape policies focused on long-term and inclusive national development.

Finance Minister Nirmala Sitharaman announced the creation of a ₹10,000 crore SME Growth Fund while presenting the Union Budget 2026–27. The proposed fund aims to strengthen small and medium enterprises by improving access to capital and supporting business expansion.

The initiative is expected to boost entrepreneurship, innovation, and job creation across the SME sector.

Finance Minister Nirmala Sitharaman announced the launch of India Semiconductor Mission 2.0 under the Union Budget 2026–27, with a renewed focus on industry-led research and development and specialised training centres for chip manufacturing.

The government has increased the outlay for the mission to ₹40,000 crore, aimed at strengthening India’s semiconductor ecosystem and reducing dependence on imports.

Finance Minister Nirmala Sitharaman proposed a ₹10,000-crore SME Growth Fund to incentivise small industries and a ₹2,000-crore Self-Reliant India Fund to support micro enterprises under the Union Budget 2026–27.

Key Highlights:

• New scheme to support states in establishing three chemical parks

• ₹10,000 crore allocated for container manufacturing over five years

• National Fibre Scheme proposed to achieve self-sufficiency in fibres

These measures aim to boost employment, strengthen domestic manufacturing, and enhance India’s industrial competitiveness.

Finance Minister Nirmala Sitharaman announced that capital expenditure for the fiscal year 2026–27 has been raised to ₹12.2 lakh crore.

The increase in Capex aims to accelerate infrastructure development, strengthen public assets, and support long-term economic growth.

Finance Minister Nirmala Sitharaman announced the launch of a multilingual AI tool designed to support farmers in improving productivity and decision-making.

The initiative aims to provide accessible, technology-driven guidance to farmers across India, helping them optimise agricultural practices and enhance crop yields.

Finance Minister Nirmala Sitharaman announced that the new Income Tax Act will come into effect from April 1, 2026. In line with this, the deadline for filing tax returns has been extended to March 31.

The move aims to simplify tax compliance and provide taxpayers additional time to adapt to the revised framework.

Finance Minister Nirmala Sitharaman introduced a six-month foreign asset disclosure scheme for taxpayers under the Union Budget 2026–27.

She also proposed that the deadline for filing ITR-1 and ITR-2 will continue to be July 31. In addition, the Tax Collected at Source (TCS) on medical and education expenses has been reduced from 5% to 2%, providing relief to taxpayers and simplifying compliance.

Finance Minister Nirmala Sitharaman announced that India’s fiscal deficit target for FY27 has been set at 4.3% of GDP. The Debt-to-GDP ratio is estimated to improve to 55.6% in FY27, down from 56.1% in FY26.

The targets signal the government’s focus on fiscal consolidation while supporting growth-oriented spending.

Finance Minister Nirmala Sitharaman announced a tax holiday for foreign companies providing cloud services to global clients through Indian data centres. The incentive will extend until 2047, provided these companies serve Indian customers through an Indian reseller entity.

She also proposed that IT services companies seeking to conclude Advance Pricing Agreement (APA) processes should aim to complete them within a period of two years, promoting clarity and ease of doing business in the sector.

Finance Minister Nirmala Sitharaman announced a new scheme to provide relief for small taxpayers. Under the proposal, a rule-based automated process will allow taxpayers to obtain a lower or nil TDS certificate without filing an application with the assessing officer.

Additionally, to ease compliance for investors holding securities in multiple companies, depositories will be enabled to accept Form 15G or 15H directly from the investor and share it with the relevant companies, simplifying the process.

Finance Minister Nirmala Sitharaman announced significant incentives for the IT sector under Union Budget 2026–27.

• A tax holiday until 2047 for any foreign company setting up data centres in India serving global clients.

• A safe harbour of 15% on costs for companies providing data services through related Indian entities.

• All IT services to be clubbed under a single category with a common safe harbour margin of 15.5%.

• Threshold for availing safe harbour for IT services to be raised to ₹2,000 crore from ₹300 crore.

• Safe harbour approvals for IT services to be processed through an automatic, rule-driven model, simplifying compliance.

The measures are aimed at strengthening India’s position as a global IT hub while promoting ease of doing business for both domestic and foreign players.

Finance Minister Nirmala Sitharaman announced initiatives to boost India’s creative and education sectors under Union Budget 2026–27.

• Indian Institute of Creative Technologies to be set up in Mumbai, supporting animation, visual effects, and gaming industries.

• Five university townships planned, featuring academic zones with multiple colleges, skill centres, and residential areas.

• Proposal to establish one girls’ hostel in every district to enhance access to higher education.

• A new National Institute of Design to be set up in East India.

• ₹20,000 crore outlay over the next five years for Carbon Capture Utilization and Storage projects.

These measures aim to strengthen skill development, higher education, and the rapidly growing creative economy.

Finance Minister Nirmala Sitharaman announced measures to simplify customs and excise duties as part of Union Budget 2026–27.

The reforms are aimed at promoting domestic manufacturing, reducing regulatory complexity, and strengthening India’s position under the Make in India initiative.

Finance Minister Nirmala Sitharaman announced measures to integrate small traders and artisans with e-commerce platforms.

She said that fish caught by fishermen in the seas will not attract any duty. The government plans to connect these small businesses and craftsmen with digital marketplaces to expand their reach.

Additionally, the ₹10 lakh turnover limit for small businesses is being removed, and the scheme will be implemented for the next four years.

Finance Minister Nirmala Sitharaman announced that the tax on option trading in the stock market has been increased as part of the Union Budget 2026–27.

The move is aimed at rationalising taxation in financial markets while ensuring fair compliance.