Union Budget 2026 Live Updates

By: WE Staff | Sunday, 1 February 2026

Finance‍‌‍‍‌ Minister Nirmala Sitharaman is set to present her ninth Budget to the Parliament today (February 1, 2026), which will be the first time the Union Budget in India would be presented on a Sunday.

The Budget is likely to reveal measures for sustaining the growth momentum, keeping up the fiscal discipline, and carrying out reforms that will keep the economy insulated from global trade frictions, including US tariffs.

The‍‌‍‍‌ Economic Survey 2025-26, Chief Economic Advisor V. Anantha Nageswaran has written, was tabled in the Parliament on Thursday (January 29, 2026). It is a 7.4% growth forecast for the year 2025-26, Q3 nowcast being 7%, and 6.8–7.2% growth for the year 2026-27.

12:25

Union Budget 2026-27 Concludes

Budget 2026-27 announced for 1 hour 25 minutes

12:20

Total Budget Estimated at 46.9 lakh crore

12:15

Key Taxation Reforms in Budget 2026

New Income Tax Act (Effective April 1, 2026)

Replaces the earlier framework with a simplified structure.

Designed to make the new regime the default, phasing out the old regime gradually.

Focus on clarity, fewer exemptions, and easier compliance.

Income Tax Slabs (FY 2026–27)

Rationalisation of slabs to provide relief to the middle class.

Salaried taxpayers see higher take-home pay due to adjustments in slab thresholds and deductions.

Standard deduction retained, but limited scope for widening slabs further.

Relief for Small Taxpayers

A new scheme announced to ease compliance for small taxpayers and micro businesses.

Simplified filing norms and reduced paperwork.

Focus on Middle-Class & Salaried Taxpayers

Continued relief after last year’s boost (income up to ₹12 lakh exempted in 2025).

Budget 2026 builds on this by raising thresholds modestly and ensuring more disposable income.

Corporate & Indirect Tax Measures

No major changes in corporate tax rates, but emphasis on compliance simplification.

GST rationalisation continues, with a focus on reducing litigation and improving efficiency.

Introduction of Minimum Alternate Tax (MAT)

Budget 2026 has announced that the Minimum Alternate Tax (MAT) will serve as the final tax liability for companies under the new regime, marking a significant simplification of corporate taxation.

Under Budget 2026, the tax rate on book profits is reduced from 15% to 14%, effective from FY 2026-27 (AY 2027-28), with MAT becoming the final tax liability and no credit carry-forward permitted.

12:10

Buyback Capital Tax Proposes

FM Nirmala Sitharaman proposes a buyback capital tax.

12:04

ITR Deadline Revised

FM Sitharaman announces that Indian taxpayers can now file a revised ITR by 31 March with a payment of a nominal fee.

12:03
Integration with AgriStack & ICAR
Links digital farmer records under AgriStack with ICAR’s package of practices.
Ensures advisories are scientifically validated and tailored to local crop, soil, and weather conditions.

12:02

Bharat Vistaar - Multilingual Indian AI Tool
Provides advisories in multiple Indian languages, ensuring inclusivity for farmers across diverse regions.
Offers voice-based, real-time assistance in local dialects.

12:00

Make India a global leader in the service sector by 2047
Talking about emerging technologies and AI, the FM proposes to set up a high-powered Committee to recommend measures for the Service sector as a score-driver of Viksit Bharat. It will also measure the impact of emerging technologies and AI on jobs. 

11:59

Research & Development Investment
Increased emphasis on R&D funding to strengthen women’s participation in STEM fields.
Linked to the National Education Policy (NEP) 2020 implementation, focusing on inclusion and future readiness.

11: 59

New Universities & Creative Institutes
Expansion of higher education infrastructure, including new universities and creative institutes in Mumbai.
University townships will integrate STEM-focused facilities and innovation hubs.

11:57 
A Boost in Investment Limit for Overseas Indian Residents
FM Nirmala Sitharaman announces the increase in the overall investment limit for overseas Indian residents to 24%, a sharp rise from the existing 10% level.

11:56

Simplified Income Tax Rules & Forms will be notified shortly

11:49

7 high-speed rail corridors to be developed as growth collectors.
Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri.

11:45 

A Strong Push for Infrastructure
The government will continue to focus on developing infrastructure across Tier 2 and Tier 3 cities with over 5 lakh population
An increase of Public Capital Expenditure to Rs. 12.2 lakh crores has been proposed

11:42

Girls’ STEM Hostels Nationwide

At least one hostel per district dedicated to women pursuing higher education in STEM.

Designed to address challenges of prolonged lab hours and safety concerns for female students.

11:40

Proposal to set up ABGC Content Creator Labs
The FM has proposed setting up ABGC (Animation, Visual Effects, Gaming, and Comics) content creator labs across 1500 secondary schools and 500 colleges.

11: 37 

20 New National Waterways to be Operationalised
In order to promote environmentally sustainable cargo movement, the FM proposes to operationalise 20 new national waterways over the next 5 years

11:36

200 Legacy Industrial Clusters to be Revived
In order to awaken legacy industrial sectors, the FM has proposed a scheme to revive 200 legacy industrial clusters. This will improve cost competitiveness and efficiency. 

11:34

Integrated program for the labour-intensive textile sector announced
FM has announces integrated program for the labour-intensive textile sector:
National Fiber Scheme for self-reliance in natural, manmade and new-age fibers
Textile expansion and employment scheme
National Handloom and Handicraft Scheme
Tex-eco initiative
Samarth 2.0

11:30

Strategic Missions

Biopharma SHAKTI: A new scheme with an outlay of ₹10,000 crore over 5 years to boost domestic production of biologics and biosimilars.

Kavach 4.0: Rapid rollout of the railway safety system across all high-density routes.

Urban Challenge Fund: A ₹1 Lakh crore fund for next-generation urban development.

11:24

New Sector-Specific Schemes
Textiles & Handlooms: A new Natural Fibre Scheme and a Textile Expansion and Employment Scheme have been proposed to modernize clusters and create jobs.

Semiconductor Mission 2.0: Building on the previous mission, ISM 2.0 has been launched. It focuses on domestic production of semiconductor equipment, materials, and creating Indian-owned Intellectual Property (IP).

Electronics Boost: The outlay for the Electronics Component Manufacturing Scheme was significantly hiked to ₹40,000 crore.

11:18

MSME Support

Proposed 3-stage support for MSMEs growth. Equity Support: 10 Thousand cr growth fund to create future champions. Self-reliant India fund to maintain the risk capital & Liquidity Support.

11:16

Mahatma Gandhi Gram Swaraj Yojana
Proposed to start the Mahatma Gandhi Gram Swaraj Yojana to strengthen Khadi, Handloom & Handicraft, benefiting weavers, village artisans, and the OPOP initiative.

11:15
Reform Express is well on its way: Sitharaman
FM highlights the comprehensive reforms undertaken by the government towards job creation

11:13

Infrastructure & Safety
Rare Earth Corridors: Establishment of dedicated mineral corridors in Odisha, Tamil Nadu, Kerala, and Andhra Pradesh.

11:12

FM Hails 2026 budget as ‘Yuva Shakti-driven Budget.’

11:03

FM highlights the stability of the Indian Economy
FM says that since the Modi Government assumed office, the Indian economy has showcased stability, fiscal discipline, sustained growth, and moderate inflation.

February 01, 2026 11:01

FM Nirmala Sitharaman begins Budget Speech for FY2026-27
This is her ninth consecutive time presenting the Union Budget