NEW DELHI – Finance Minister Smt. Nirmala Sitharaman on Saturday, February 1, 2026, presented the Union Budget for the fiscal year 2026-27 to Parliament, outlining the government's financial roadmap and strategic priorities. The budget introduced a series of measures aimed at fostering economic growth, enhancing public welfare, and strengthening national infrastructure, with significant allocations across defence, education, railways, and income tax regulations.

The budget speech highlighted a continued focus on capital expenditure to drive economic activity, alongside targeted interventions in social sectors. Ten key announcements emerged as central to the government's agenda for the coming year, influencing various aspects of the Indian economy and public life. These proposals aim to balance fiscal prudence with developmental goals, addressing long-term challenges and immediate needs.

Key announcements from the Union Budget 2026 include:

  • Defence Modernisation Fund: An allocation of ₹6.2 lakh crore for the Ministry of Defence, representing a 15% increase from the previous fiscal year, with a significant portion earmarked for capital acquisition and indigenous defence manufacturing under the 'Atmanirbhar Bharat' initiative.
  • National Digital Education Infrastructure: Establishment of a new fund totaling ₹75,000 crore over the next three years to expand digital learning platforms, develop educational content in regional languages, and equip educational institutions with advanced technological infrastructure.
  • Railway Network Expansion: Sanction for 400 new Vande Bharat Express trains to be manufactured and deployed within the next three years, alongside an investment of ₹2.4 lakh crore for railway track modernization, electrification, and safety upgrades.
  • Income Tax Relief for Middle Class: An adjustment to income tax slabs, increasing the tax-free income threshold for individuals under the new tax regime from ₹7 lakh to ₹7.5 lakh, aiming to provide relief to middle-income taxpayers.
  • Urban Infrastructure Development Fund: Creation of a new ₹1 lakh crore fund to support state governments and urban local bodies in developing sustainable urban infrastructure, focusing on smart cities, public transport, and waste management.
  • Accelerated Renewable Energy Targets: A commitment of ₹35,000 crore for capital investment towards achieving the target of 500 GW renewable energy capacity by 2030, including incentives for green hydrogen production and solar power projects.
  • PM Awas Yojana Expansion: An increase in the allocation for the Pradhan Mantri Awas Yojana by 20%, aiming to complete 80 lakh new houses for the urban and rural poor in the upcoming fiscal year.
  • Skill India Digital Platform: Launch of an enhanced Skill India Digital platform to further integrate skill development programs, vocational training, and job matching services, connecting over 3 crore youth with industry-relevant skills.
  • Health Sector Strengthening: An allocation of ₹92,000 crore for the Ministry of Health and Family Welfare, with a focus on establishing 157 new nursing colleges and strengthening primary healthcare facilities across underserved regions.
  • Agricultural Credit Target: An increased agricultural credit target of ₹22 lakh crore, aiming to provide easier access to credit for farmers, particularly small and marginal farmers, to boost agricultural productivity and food security.

The Finance Minister emphasized that the budget proposals are designed to promote inclusive growth, enhance India's global competitiveness, and ensure fiscal stability. The implementation of these announcements will now commence, with respective ministries and departments tasked with executing the planned initiatives and projects over the coming fiscal year.