New Delhi: Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026 in Parliament today, February 1, marking her ninth consecutive budget under Prime Minister Narendra Modi’s leadership. This is only the second time in India’s fiscal history that the Union Budget is being presented on a Sunday — the last such instance was on February 28, 1999, when then finance minister Yashwant Sinha tabled the budget during the Atal Bihari Vajpayee-led NDA government.
The budget comes against the backdrop of a resilient macroeconomic outlook. According to the Economic Survey 2026, tabled on Thursday, India’s economy is projected to grow 7.4 per cent in FY26 and between 6.8 and 7.2 per cent in FY27. The survey attributes the optimism to regulatory reforms, macroeconomic stability and a renewed push for private sector investment.
Key Expectations and Themes
One of the most closely watched announcements today will be on personal income tax relief, particularly around Section 87A. There is growing public demand for higher rebates to boost take-home pay amid inflation and rising household expenses. However, tax experts caution that last year’s overhaul of tax slabs and rebates — estimated to have cost the exchequer nearly ₹1 lakh crore — leaves limited fiscal room for another major expansion.
Markets and economists will also track whether the government sticks to its fiscal consolidation roadmap. Attention is focused on whether the finance minister adheres to the targeted fiscal deficit of 4.4 per cent for 2025–26 or adjusts the glide path to allow for higher growth-oriented spending.
Banking, Gold and Poll-Bound States
Budget Day coincides with several banking changes taking effect from February 1, including revisions to IMPS charges, credit card reward structures and KYC compliance deadlines announced by major banks such as SBI, HDFC Bank and PNB.
There is also keen interest in any changes to customs duty on gold, a move that could influence bullion prices, jewellery demand and the current account balance.
With assembly elections approaching in West Bengal and Tamil Nadu, expectations are high for region-specific announcements aimed at infrastructure, welfare and employment generation.
As Sitharaman rises to deliver her speech, the Union Budget 2026 is expected to balance fiscal discipline with growth, address voter concerns on taxes and cost of living, and lay out the government’s economic priorities for the coming year.
