Budget Speech 2026 PDF

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PDF NameBudget Speech 2026
No. of Pages65
PDF Size0.65 MB
LanguageEnglish
PDF CategoryGovernment
Source / Creditsindiabudget.gov.in
Uploaded ByPradeep
Budget Speech 2026

Budget Speech 2026 - Summary

Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 2026-2027 in Parliament on 1st February 2026.

On the sacred occasion of Magha Purnima and the birth anniversary of Guru Ravidas, the Finance Minister said, as this is the first Budget prepared in Kartavya Bhawan, it is inspired by 3 kartavya:

  1. First kartavya is to accelerate and sustain economic growth, by enhancing productivity and competitiveness, and building resilience to volatile global dynamics.
  2. Second kartavya is to fulfil aspirations of  people and build their capacity, making them strong partners in India’s path to prosperity
  3. Third kartavya, aligned with vision of Sabka Sath, Sabka Vikas, is to ensure that every family, community, region and sector has access to resources, amenities and opportunities for meaningful participation.

Key highlights of the budget speech:

  • The rollout of India Semiconductor Mission 2.0 to boost the country’s growing chip ecosystem. The upgraded mission places a strong emphasis on industry-led research, advanced training centres and deeper collaboration with global technology leaders. The government has significantly increased the outlay for the initiative to Rs 40,000 crore.
  • This enhanced funding aims to build on the momentum generated by the earlier phase of the semiconductor mission and accelerate domestic manufacturing capabilities.
  • Sitharaman also highlighted that mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu will receive targeted support to strengthen the raw material pipeline essential for chip production.
  • Traditional industries will undergo modernisation to improve productivity, enhance global competitiveness and adopt cleaner, technology-driven processes.
  • A dedicated push will be given to build globally competitive MSMEs. Policy support, credit facilitation and technology adoption will be central to strengthening India’s MSME backbone.
  • Infrastructure development to remain a key driver of economic momentum. The government plans to upgrade transport networks, logistics systems and essential utilities to support rapid growth.
  • Measures will focus on building resilient economic systems, strengthening financial stability and ensuring that long-term growth remains sustainable and secure.
  • An increase of about 9 per cent in capital expenditure for the coming financial year, raising the allocation to Rs 12.2 lakh crore in the Union Budget 2026-27.
  • The capital expenditure has been increased to Rs 11.21 lakh crore, up from the Rs 11.21 lakh crore allocated in the last Union Budget for FY25-26. For FY26, the government had set a capex allocation of Rs 11.21 lakh crore.
  • Seven high-speed rail corridors to come up as part of efforts to boost connectivity and infrastructure in India. Key routes include: Mumbai to Pune; Pune to Hyderabad; Hyderabad to Bengaluru; Bengaluru to Chennai.
  • A proposal for incentives of Rs 100 crore for single bond issuance by municipal corporations of more than Rs 1,000 crore. Restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC) as part of the government’s public sector financial institution strengthening.
  • The minister proposed setting up a high-level committee on ‘Banking for Viksit Bharat’. Proposal to review foreign exchange management non-debt instruments rules. Sitharaman said that close to 25 crore people have come out of multi-dimensional poverty.
  • A proposal to set up a Rs 10,000 crore fund to create champion small and medium enterprises (SMEs) to boost the economy. Mega textile parks with a focus on value addition to technical textiles would be set up. The budget also proposed setting up mega textile parks with a focus on value addition to technical textiles and an integrated textile programme with five sub-parts.
  • One girls’ hostel to be set up in every district of the country. A loan-linked capital subsidy support scheme for veterinary colleges, hospitals, and diagnostics laboratories.
  • The upgrading Ayush pharmacies and drug testing labs, the WHO (World Health Organisation) Traditional Medicine Centre at Jamanagar, Gujarat. The Centre to support five university townships in the vicinity of major industrial logistics centres.

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