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The Union Budget 2026–27, presented by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, is positioned as a Yuva Shakti–driven Budget, with a strong emphasis on youth-led growth and capacity building.
Overall Theme and Context
The Union Budget 2026–27 reflects the Government’s Sankalp (firm resolve) to prioritise the poor, the underprivileged, and disadvantaged sections of society. It is the first Budget prepared in Kartavya Bhawan and is guided by three Kartavya (duties) that shape its vision and policy direction.
The Three Kartavya of the Budget
First Kartavya: Accelerating and Sustaining Economic Growth
The Budget aims to boost long-term growth by enhancing productivity and competitiveness while strengthening resilience against global economic volatility.
Second Kartavya: Fulfilling Aspirations and Building Capacity
It focuses on empowering citizens by strengthening human capital and enabling people to become active partners in India’s development journey.
Third Kartavya: Sabka Sath, Sabka Vikas
Aligned with inclusive growth, this Kartavya seeks to ensure equitable access to resources, services, and opportunities for every family, community, region, and sector.
Broader Economic Backdrop
India continues its steady progress towards Viksit Bharat, balancing ambition with inclusion. As a rapidly growing economy, India must remain integrated with global markets, expand exports, and attract stable long-term investments. The Budget acknowledges challenges such as global trade disruptions, supply chain vulnerabilities, rapid technological change, and rising pressure on water, energy, and critical minerals.
Government Reforms Since 2025
Following the Prime Minister’s 2025 Independence Day announcement, over 350 reforms have been implemented, including GST simplification, labour code notifications, and rationalisation of quality control orders. High-level committees and Centre–State coordination are driving deregulation and compliance reduction.
First Kartavya: Accelerating and Sustaining Economic Growth
Key Intervention Areas
Growth will be driven through manufacturing expansion in strategic sectors, revitalisation of legacy industries, promotion of MSMEs, infrastructure investment, energy security, and development of City Economic Regions.
Biopharma Sector
A Biopharma Shakti initiative with an outlay of ₹10,000 crore will promote domestic production of biologics and biosimilars through institutional strengthening, expanded clinical trial infrastructure, and regulatory capacity building.
Textile Sector
An integrated textile programme will focus on fibre self-reliance, modernisation of clusters, employment generation, sustainability, artisan support, and skill development through Samarth Version 2.0.
MSMEs
Recognised as a growth engine, MSMEs will be supported through a ₹10,000 crore SME Growth Fund aimed at nurturing future champion enterprises based on performance-linked incentives.
Public Capital Expenditure
Capital expenditure has risen sharply from ₹2 lakh crore in 2014–15 to ₹11.2 lakh crore in 2025–26 and is proposed to increase further to ₹12.2 lakh crore in 2026–27.
Logistics, Transport, and Urban Development
Key initiatives include a new Dedicated Freight Corridor, expansion of national waterways, development of City Economic Regions, and the introduction of seven high-speed rail corridors to promote sustainable mobility.
Second Kartavya: Fulfilling Aspirations and Building Capacity
Government efforts have enabled nearly 25 crore people to exit multidimensional poverty. Capacity-building initiatives span healthcare, education, skills, culture, tourism, sports, and veterinary services.
Major measures include:
- Regional medical hubs and promotion of medical tourism
- Expansion of veterinary education and infrastructure
- Support for the creative economy and AVGC sector
- Establishment of girls’ hostels in every district
- Upgradation of tourism and hospitality skills
- Launch of the Khelo India Mission to transform the sports ecosystem
Third Kartavya: Sabka Sath, Sabka Vikas
Inclusive development is pursued through agriculture digitisation, women-led self-help enterprises, mental health infrastructure expansion, and targeted development of Purvodaya and North-East regions, including electric mobility and Buddhist circuit tourism.
Fiscal and Taxation Measures
- Fiscal consolidation continues with a declining debt-to-GDP ratio and fiscal deficit.
- A new Income Tax Act (2025) will take effect from April 2026, simplifying compliance.
- Direct tax reforms include TCS reductions, decriminalisation of minor offences, and asset disclosure schemes.
- Indirect tax measures focus on customs simplification, duty exemptions for critical sectors, and trade facilitation.
- Incentives are provided to cooperatives, IT services, and global investors to enhance competitiveness.
Conclusion
The Union Budget 2026–27 marks a decisive transition from welfare-centric spending to youth-led, capacity-driven growth, underpinned by fiscal discipline and inclusive development. By integrating economic acceleration with the vision of Sabka Sath, Sabka Vikas, the Budget lays a robust foundation for India’s journey towards Viksit Bharat amid global uncertainty.