Union Budget 2026: FM Sitharaman Tables Forward-Looking Plan Amid Growth Projections of 7.4%

New Delhi, February 1 (TNA) Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament today, her ninth consecutive budget, emphasising structural reforms, fiscal prudence, and the vision of 'Viksit Bharat' amid global uncertainties. Presented in a special Sunday session starting at 11 AM IST, the budget projects India's economy to grow at 7.4% in FY26, focusing on infrastructure, manufacturing, inclusive growth, and simplified taxation.

The pre-budget Economic Survey forecasted robust growth through public investment and Atmanirbhar initiatives, with FY26 expenditure estimated at ₹50.65 lakh crore, fiscal deficit at 4.4% (from 4.8% in FY25), and net market borrowings at ₹11.54 lakh crore. Asset monetisation targets ₹10 lakh crore, prioritising energy security, renewable energy, and digital innovation.

Taxation Reforms

Key relief measures include TDS/TCS rationalisation (e.g., TCS threshold hiked to ₹10 lakh, rent TDS limit to ₹6 lakh), extended ITR filing to four years, and tax benefits for two self-occupied homes. Salaried class gains from potential standard deduction hike to ₹1 lakh and an LTCG exemption to ₹2 lakh under the new regime, with a new Income Tax Bill proposed next week for trust-based compliance.

Sectoral Allocations

Infrastructure & Manufacturing: National Manufacturing Mission for footwear, toys, solar PV; dedicated scheme to create 22 lakh jobs in leather/footwear exports.

MSMEs & Startups: MSME credit guarantee doubled to ₹10 crore; ₹10,000 crore fund-of-funds.

Green Initiatives: ₹20,000 crore for carbon capture; exemptions for EV/mobile battery manufacturing.

Priorities: Defence, railways, agriculture, jobs, healthcare, education, and gig workers.