Published: 31 January 2026PIB / Business Standard / Al JazeeraEconomy
Union Budget 2026-27 Presented: Nirmala Sitharaman's Ninth Budget Targets Viksit Bharat with ₹53.47 Lakh Crore Expenditure
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026, her ninth consecutive budget — the longest uninterrupted tenure for a Finance Minister in independent India. The budget, themed around Viksit Bharat, was presented on a Sunday as BSE and NSE conducted regular trading sessions on Budget Day.
Key fiscal figures: Total budgeted expenditure stands at ₹53.47 lakh crore; Capital Expenditure is pegged at ₹12.22 lakh crore (an 11.5% increase over revised estimates of 2025-26); Effective capex including grants to states for capital assets reaches ₹17.15 lakh crore; Fiscal deficit is targeted at 4.3% of GDP for 2026-27, down from the revised 4.4% in 2025-26; Nominal GDP growth is projected at 10% for 2026-27.
Major sectoral announcements include: The Biopharma SHAKTI scheme with a ₹10,000 crore outlay over five years to scale biopharmaceutical manufacturing; three new AIIMS and three new All India Institutes of Ayurveda; five Regional Medical Hubs for medical value tourism; a ₹10,000 crore SME Growth Fund and ₹2,000 crore top-up to the Self-Reliant India Fund; Agriculture allocation of ₹1.63 lakh crore; Bharat-VISTAAR, an AI-powered multilingual agricultural advisory platform; Renewable energy sector allocation raised 30% to ₹32,914 crore; and Defence Ministry receives a record ₹7.85 lakh crore (14.67% of the Union Budget, a 15.19% increase over 2025-26). The Income Tax Act 2025 is to come into force from April 1, 2026, replacing the six-decade-old Income Tax Act, 1961. No changes were made to income tax slabs, maintaining zero tax for annual income up to ₹12 lakh under the new tax regime.
For Rajasthan, the budget's focus on industrial clusters, MSME growth capital, agriculture, and renewable energy — especially the 30% increase in renewable energy allocation — directly benefits the state's solar energy sector and MSME-heavy textile clusters in Bhilwara and Jodhpur.
Mains angle
Q: Examine the key fiscal and sectoral priorities of the Viksit Bharat-themed Union Budget 2026-27 presented by Nirmala Sitharaman.
Answer (50 words):
Sitharaman's ninth consecutive Budget on 1 February 2026 totalled ₹53.47 lakh crore with capex ₹12.22 lakh crore, effective capex ₹17.15 lakh crore, fiscal deficit 4.3 percent of GDP. Flagships: Biopharma SHAKTI ₹10,000 crore, renewable energy up 30 percent to ₹32,914 crore, defence ₹7.85 lakh crore.
6-axis classification
CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / Business Standard / Al Jazeera
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Linked questionMedium
What fiscal deficit target did Union Budget 2026-27 set for FY 2026-27?
Explanation · Correct answer BThe article specifies fiscal deficit was targeted at 4.3 percent of GDP for 2026-27, down from 4.4 percent in 2025-26 RE.
Frequently asked questions
What were the key financial figures in Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman?
Union Budget 2026-27 set total expenditure at ₹53.47 lakh crore, capital expenditure at ₹12.22 lakh crore, and a fiscal deficit target of 4.3% of GDP.
What is the Biopharma SHAKTI scheme announced in Union Budget 2026-27?
The Biopharma SHAKTI scheme was launched in Budget 2026-27 with an allocation of ₹10,000 crore to boost India's biopharmaceutical sector and strengthen domestic drug manufacturing capabilities.
What is the Bharat-VISTAAR platform announced in Union Budget 2026-27?
Bharat-VISTAAR is an AI-powered agricultural advisory platform launched in Budget 2026-27 to provide real-time, data-driven farming guidance to Indian farmers and improve agricultural productivity.
What record did Finance Minister Nirmala Sitharaman set with the Union Budget 2026-27 presentation?
By presenting Union Budget 2026-27 on February 1, 2026, Nirmala Sitharaman delivered her ninth consecutive budget, making her the Finance Minister with the most consecutive budget presentations in India's history.
How many new AIIMS were announced in Union Budget 2026-27 and what is their significance?
Three new AIIMS were announced in Budget 2026-27 to expand healthcare infrastructure across India, building on the government's ongoing effort to provide tertiary healthcare to underserved regions.