India’s Union Budget 2026–27 focuses on boosting infrastructure, simplifying taxes, and promoting inclusive growth. The government raised capital expenditure to ₹12.2 lakh crore, introduced major railway and rare earth projects, and announced relief in income tax rules while maintaining fiscal discipline. (Click on Links to read in detail on respective News websites)
Major Highlights of Union Budget 2026–27
1. Economic Growth & Fiscal Discipline
- Budget size: ₹53.5 lakh crore.
- Fiscal deficit target: 4.3% of GDP for FY 2026–27.
- Debt-to-GDP ratio: Aimed at 55.6%.
- Emphasis on economic stability amid global volatility and strengthening domestic demand. News24 Jagran Josh
2. Capital Expenditure & Infrastructure Push
- Capex allocation: Raised to ₹12.2 lakh crore, up from ₹11.21 lakh crore in FY 2025–26.
- Focus on railways expansion including seven high-speed rail corridors.
- Development of rare earth corridors to reduce import dependence and strengthen strategic industries. The Financial Express Times of India
3. Taxation & Compliance
- Income tax relief: Simplified rules for individuals, easing compliance.
- Securities Transaction Tax (STT): Increased, impacting stock market trades.
- Buyback taxes: New levies on promoters.
- Penalties: Stricter measures introduced for tax evasion. The Financial Express
4. Sectoral Interventions
- Manufacturing: Scaling up in seven frontier sectors, rejuvenating legacy industries.
- MSMEs: Support for creating “champion MSMEs” with easier credit access.
- Agriculture: Continued focus on farmer welfare and rural infrastructure.
- National Fibre Scheme: Promoting self-sufficiency in fibre production. The Indian Express
5. Railways & Connectivity
- High-speed rail projects announced across multiple states.
- Logistics corridors to improve freight efficiency.
- Push for green mobility and electrification of railway lines. Times of India
6. Social & Inclusive Development
- Yuva Shakti (Youth Empowerment): Skill development and entrepreneurship programs.
- Sabka Saath, Sabka Vikas: Ensuring equitable access to resources and opportunities for all communities.
- Healthcare & education: Increased allocations for public health infrastructure and digital learning. The Indian Express Jagran Josh
Key Takeaways for Ordinary Citizens
- Tax relief will simplify filing and reduce burden for middle-class taxpayers.
- Infrastructure expansion (railways, roads, rare earth corridors) will create jobs and improve connectivity.
- MSME support benefits small businesses, especially in manufacturing and services.
- Youth-focused programs aim to boost employment opportunities.
Risks & Challenges
- Higher STT and buyback taxes may discourage retail investors.
- Fiscal deficit at 4.3% shows caution, but balancing growth with fiscal discipline will be challenging.
- Global volatility in energy and commodity prices could impact India’s growth trajectory.
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