Union Budget 2026-27: LIVE
The presentation will also be the second full Budget since NDA returned to power for a third consecutive term in the 2024 general elections
FM Sitharaman (front left) & MoS Pankaj Chaudhary after final touches to Union Budget 2026–27, on Saturday. (Photo: PTI)
New Delhi, Feb 1: The Union Budget 2026–27, to be presented by Finance Minister Nirmala Sitharaman today, is expected to prioritise defence, infrastructure, capital expenditure, power and affordable housing.
Sitharaman will table the Budget in the Lower House, marking the 15th Union Budget of the Narendra Modi-led government.
The presentation will also be the second full Budget since the National Democratic Alliance (NDA) returned to power for a third consecutive term in the 2024 general elections.
The Finance Minister is set to create history by becoming the first woman to present the Union Budget for the ninth consecutive time.
Economists said expectations around the FY27 Budget differ from the previous year, which was largely focused on boosting middle-class consumption through tax relief measures. The upcoming Budget, they noted, is likely to take a more calibrated approach to stimulating consumption while prioritising long-term growth drivers.
Greater emphasis is expected on capital expenditure, particularly in sectors considered strategically important amid ongoing geopolitical uncertainties. Defence preparedness, infrastructure development and energy security are likely to feature prominently in the spending roadmap.
According to an India Strategy report by Motilal Oswal Financial Services Ltd, capital spending is expected to remain a key priority in the Budget, with allocations also likely to support higher growth in affordable housing.
Stay tuned for live updates, below:
Live Updates
- 1 Feb 2026 12:31 PM IST
Infrastructure
In the past decade, Sitharaman stated that govt has undertaken several initiatives for large scale enhancement of public infrastructure.
She announced a committed and continued focus to develop infrastructure in cities with over 5 Lakh population that is, tier II and tier III, also calling them growth centres.
She noted that Public Capital Expenditure has increased from 2 lakh crore in 2014-15 to 11.2 lakh crore in 2025-26. In the FY 2026-27, FM proposes to increase it to 12.2 lakh crores.
Alongside, she also proposes to set up an infrastructure risk guarantee fund so as to provide partial credit guarantee to lenders.
Moreover, FM proposed to establish new dedicated freight corridors connecting Dankuni in the East to Surat in the West. She also announced a proposal to operationalise 20 new waterways over next five years starting with National Waterways 5 in Odisha.
A ship-repair ecosystem catering to inland waterways will be set up in Varanasi and Patna.
There will be a launch of coastal cargo promotion scheme for incentivising model shift from rail to road, so as to increase the share of inland waterways and coastal shipping from 6% to 12% by 2047.
- 1 Feb 2026 12:14 PM IST
Three pronged approach to champion MSME's
- Recognising MSME's as a vital engine of growth, she proposed equity support by a dedicated Rs 10,000 crores SME growth fund.
- To top-up the self-reliant India fund with Rs. 2,000 crore (first set up in 2021)
- Liquidity support through TREDS platform
GOI also proposes to facilitates support to professional institutions such as ICAI, ICSI, ICMAI to design short term modular courses and practical tools to develop a cadre of Corporate Mitras, especially in tier II and tier III towns.
- 1 Feb 2026 12:10 PM IST
Rejuvenation of legacy industrial clusters
Proposes a scheme to revive 200 legacy industrial clusters to improve the cost competitiveness and efficiency through infrastructure and technology upgradation.
- 1 Feb 2026 12:08 PM IST
FM announces for a dedicated Initiative for sports goods to promote manufacturing, research and innovation in equipment design as well as material sciences
- 1 Feb 2026 12:06 PM IST
Integrated Program for labour intensive textile sector:
She proposed a program for labour intensive textile sector with five subparts:
- The National Fibre Scheme for self-reliance in natural fibres, such as silk, wool and jute, man-made fibres and new age fibres.
- Textile expansion and employment scheme
- The National Handloom and Handicraft Program (To integrate and strengthen existing schemes)
- Text-eco initiative
- Samarth 2.0
- Setting up of mega textile parks
- Launch the Mahatma Gandhi Gram Swaraj Initiative
- 1 Feb 2026 11:59 AM IST
The Finance Ministry also proposes a scheme for container manufacturing with allocation of Rs. 10,000 crore over 5 years to create a globally competitive container manufacturing ecosystem.
- 1 Feb 2026 11:58 AM IST
FM announced the introduction of a scheme for enhancement of construction and infrastructure equipments to strengthen domestic manufacturing production of high-value CIE. This will range from lifts in multi-storied apartments or fire fighting equipment in multiplexes and to tunnel boring equipment for building metros and high altitude roads.
- 1 Feb 2026 11:56 AM IST
Towards building strong capital goods capability, FM proposed establishment of high tech tool rooms by Central Public Sector Enterprises at two locations.
- 1 Feb 2026 11:53 AM IST
Three dedicated chemical parks
FM proposed new scheme to support states in establishing three dedicated chemical parks through challenged routes on a cluster based plug-and-play model.
- 1 Feb 2026 11:50 AM IST
Scheme for rare earth permanent magnets
First launched in November 2025, Govt propose to support the mineral rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated are earth corridors, to promote mining, processing, research and manufacturing.
