Union Budget 2026: How The Government Plans Its Finances Every Year
Union Finance Minister Nirmala Sitharaman
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Union Finance Minister Nirmala Sitharaman
Budget: Should the govt play to the gallery of domestic equity investors by lunging for growth? Or should it choose fiscal restraint to keep a lid on rising borrowing costs — both for itself and the private sector? There are no easy answers.
Despite a slower pace of tax refunds, the growth in collection was much below the budgeted 12.7% increase for the entire 2025-26. With less than three months left in this fiscal, experts are cautiously optimistic about meeting the budget target of ₹25.20 lakh crore.
India's net direct tax collections have seen a significant increase of 8.82%, reaching Rs 18.38 lakh crore between April 1 and January 11. This growth encompasses both corporate and non-corporate tax contributions. Notably, total refunds issued during this period saw a substantial decrease of 16.92% compared to the previous year.
Two areas warrant urgent attention which Budget 2026 can address: the allowability of ESOP expenditure in the hands of companies, and the taxation challenges faced by globally mobile employees.
The Union Budget 2026 is set to target 8.5-9% economic growth. Capital expenditure will see a significant increase. The budget will prioritise MSMEs and export-oriented sectors. Measures to ease compliance and potentially reduce customs duties are expected.
India’s fish production surged 106 percent to 197.75 lakh tonnes in FY 2024–25, making it the world’s second-largest fish producer and a leader in shrimp exports.
Budget 2026 Date And Time: The Budget presentation will adhere to the now-established practice of being tabled at 11 am.
In 2025, personal income tax rules were significantly revamped. Annual income up to Rs 12 lakh became almost entirely tax-free.
Union Budget 2026: Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, 2026. Parliament will convene for the Budget session on January 28, 2026. The session will conclude on April 2, 2026. The President will address a joint sitting on the opening day. This marks a significant event for the nation's financial planning.
PHDCCI urges Nirmala Sitharaman for tax relief and policy stability in Budget 2026 to boost housing demand, capital flows, and support homebuyers, developers, NBFCs, etc.
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