Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament on February 1, 2026 — the first budget to be prepared in Kartavya Bhawan — with widespread analysis and reactions dominating the news cycle on February 2. The budget is anchored in three 'Kartavyas': (1) accelerating and sustaining economic growth, (2) fulfilling citizens' aspirations, and (3) ensuring universal access to resources and opportunities.

Key highlights include a record public capital expenditure (Capex) allocation of ₹12.2 lakh crore for FY 2026-27, up from the revised estimate of FY 2025-26, with the fiscal deficit targeted at 4.3% of GDP and the debt-to-GDP ratio estimated at 55.6%. The total budget expenditure stands at ₹53.5 lakh crore.

Major strategic initiatives include: (a) Biopharma SHAKTI — a ₹10,000 crore scheme over five years to position India as a global biologics and biosimilars hub, establishing three new NIPERs and upgrading seven existing ones; (b) India Semiconductor Mission (ISM) 2.0 — focused on producing full-stack Indian IP in chip design, equipment and materials, and supply chain resilience; (c) seven new high-speed rail corridors, expansion of 20 national waterways; and (d) a comprehensive industrial strategy targeting seven sectors including biopharma, semiconductors, textiles, chemicals, rare earths, capital goods, and sports goods.

For Rajasthan, the budget's focus on infrastructure capex, rural employment, and the semiconductor and textiles sectors holds direct relevance. Rajasthan's textile cluster in Bhilwara and Jodhpur, as well as its potential as an electronics manufacturing hub, align with these national priorities. The 16th Finance Commission's report, submitted to the President on November 17, 2025, underpins the budget's fiscal federalism framework.