Union Finance and Corporate Affairs Minister Nirmala Sitharaman presented the Union Budget 2026–27, the first to be prepared at the newly inaugurated Kartavya Bhawan. She said the Budget is built around three core Kartavyas that guide the government’s priorities for the year ahead.
The first focuses on accelerating and sustaining economic growth by boosting productivity, strengthening competitiveness and improving India’s resilience in a volatile global environment.
The second aims to fulfil people’s aspirations by building their capacities and enabling them to participate more effectively in the country’s progress.
The third kartavya, aligned with the vision of Sabka Sath, Sabka Vikas, aims to ensure that every family, community, region and sector has equitable access to resources, amenities and opportunities for meaningful participation in development.
Outlining the fiscal framework, the Minister said non-debt receipts for FY 2026–27 are estimated at Rs 36.5 lakh crore, while total expenditure is projected at Rs 53.5 lakh crore. Net tax receipts are expected to be Rs 28.7 lakh crore. Gross market borrowings are pegged at Rs 17.2 lakh crore, and net borrowings through dated securities at Rs 11.7 lakh crore. For the ongoing year (2025–26), the Revised Estimates place non-debt receipts at Rs 34 lakh crore and total expenditure at Rs 49.6 lakh crore, including capital expenditure of about Rs 11 lakh crore. The fiscal deficit target for FY 2026–27 has been set at 4.3% of GDP, while the revised fiscal deficit for FY 2025–26 remains unchanged at 4.4%. The debt-to-GDP ratio is expected to ease slightly from 56.1% in RE 2025–26 to 55.6% in FY 2026–27.
Under the growth-focused initiatives, the government announced a scheme to revive 200 legacy industrial clusters through infrastructure upgrades and modern technology. To support small and medium enterprises, a Rs 10,000 crore SME Growth Fund will be set up to promote high-potential “Champion SMEs.” The Self-Reliant India Fund will receive an additional Rs 2,000 crore to continue supporting micro enterprises. Professional institutions such as ICAI, ICSI and ICMAI will design modular courses and tools to create a cadre of “Corporate Mitras,” particularly in Tier-II and Tier-III cities.
A major push to infrastructure includes raising public capital expenditure to Rs 12.2 lakh crore in FY 2026–27. An Infrastructure Risk Guarantee Fund will be established to provide confidence to private developers, and CPSE real estate assets will be monetised through dedicated REITs. The Budget proposes new Dedicated Freight Corridors connecting Dankuni and Surat, operationalisation of 20 new National Waterways starting with NW-5 in Odisha, and new training institutes as Regional Centres of Excellence. A ship repair ecosystem is planned for Varanasi and Patna. A Coastal Cargo Promotion Scheme will encourage modal shift towards inland waterways and coastal shipping, targeting a rise from 6% to 12% by 2047. Additional incentives will support the domestic manufacturing of seaplanes, along with a Seaplane VGF Scheme.
To strengthen long-term energy security, Rs 20,000 crore has been allocated over five years for Carbon Capture, Utilization and Storage (CCUS) technologies. The government will also develop City Economic Regions (CERs) with an allocation of Rs 5,000 crore per region over five years. Seven high-speed rail corridors will be developed as growth connectors between major cities including Mumbai–Pune, Pune–Hyderabad, and Delhi–Varanasi. A High-Level Committee on Banking for Viksit Bharat will review the sector’s readiness for India’s next phase of growth. PFC and REC will be restructured to scale up efficiency. A review of FEMA (Non-debt Instruments) Rules is also proposed. To encourage large municipal bond issuances, the government will offer a Rs 100 crore incentive for single issuances above Rs 1,000 crore.
Under the second kartavya, aimed at building capacity, a High-Powered “Education to Employment and Enterprise” Standing Committee will be constituted. The government will upgrade existing Allied Health Professional institutions and set up new ones, creating one lakh AHPs over the next five years. Five Regional Medical Hubs will be established to boost medical tourism. Three new All India Institutes of Ayurveda will come up. The animal husbandry sector will see over 20,000 additional veterinary professionals, supported by a new loan-linked subsidy scheme for veterinary colleges, labs, hospitals and breeding facilities. Support will be provided to the Indian Institute of Creative Technologies, Mumbai, to set up AVGC content labs in 15,000 schools and 500 colleges.
The education sector will get five new University Townships near industrial corridors, and one girls’ hostel will be established in every district. In tourism, the National Council for Hotel Management will be upgraded, and a pilot scheme will upskill 10,000 tourist guides. A National Destination Digital Knowledge Grid will digitally document all significant heritage and cultural sites. Fifteen archaeological sites, including Lothal, Dholavira, Rakhigarhi, Sarnath and Leh Palace, will be developed as experiential destinations. A new Khelo India Mission will be launched to strengthen sports over the next decade.
The third kartavya focuses on inclusive growth. To raise farmer incomes, the government will undertake integrated development of 500 reservoirs and promote high-value crops such as coconut, sandalwood and cocoa. A Coconut Promotion Scheme will be launched. The government will also roll out Bharat-VISTAAR, a multilingual AI-based tool integrating AgriStack and ICAR systems. A new Divyangjan Kaushal Yojana will provide skills for roles in IT, AVGC, hospitality and F&B. In mental health, NIMHANS-2 will be established in North India, and institutes in Ranchi and Tezpur will be upgraded.
For the Purvodaya states and the Northeast, the government will develop an East Coast Industrial Corridor with a key node at Durgapur, create five major tourism destinations, deploy 4,000 e-buses, and launch a Buddhist Circuit across six northeastern states. Finally, the Centre has allocated Rs 1.4 lakh crore to states for FY 2026–27 as recommended by the 16th Finance Commission.
