Updated on: Feb 01, 2026 5:21:30 PM IST
Union Budget 2026 LIVE: People watch Union Finance Minister Nirmala Sitharaman’s budget speech in Parliament, in Patna on Sunday, 1 February 2026.
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Accelerating and sustaining economic growth: The focus is on enhancing productivity, efficiency, and competitiveness while building resilience to withstand volatile global dynamics and external shocks.Fulfilling people’s aspirations and capacity building: This responsibility targets building the capacity of citizens through skill-building, employment, and human capital development, making them active partners in the nation’s path to prosperity.Ensuring inclusive access to opportunities: Aligned with the vision of Sabka Saath, Sabka Vikas, this duty aims to ensure that every family, community, region, and sector has equitable access to resources, amenities, and opportunities for meaningful participation.
The Fiscal Arithmetic
The hallmark of Budget 2026 is its commitment to fiscal glide paths. After the pandemic-era spike, the government has managed to trim fiscal deficit target to 4.3% of GDP, down from 4.4% in the revised estimates for the current year.
• Gross Tax Revenue: Projected to reach ₹44.04 lakh crore, driven largely by robust collections in Income Tax ( ₹14.66 lakh crore) and Corporation Tax ( ₹12.31 lakh crore).
• Borrowing Plan: To fund the fiscal deficit, the government plans gross market borrowings of ₹11.73 lakh crore, maintaining a stable presence in the sovereign bond markets.
• Nominal GDP Growth: The budget is built on a conservative yet steady nominal GDP growth assumption of 10%, projecting a total gross domestic product of ₹393 lakh crore.
• Largest-ever capex: Government spending remains the primary engine of its economic strategy. The budget allocates ₹12.22 lakh crore directly to capex, a 11.5% increase over the previous year’s revised estimates.
“Progressively, the share of effective capex has increased over the years while expenditure on revenue account has come down, indicating an improved quality of expenditure,” Sitharaman said in her budget speech.
Global risks
“In a year marked by global trade volatility and US tariffs, the government’s adherence to fiscal consolidation—aiming for a deficit glide path near 4%—is the ‘stability premium’ foreign investors were looking for,” said Vaibhav Mittal, a partner at Khaitan & Co.
“By avoiding populist excesses and focusing on ‘fiscal prudence and monetary stability’, the budget provides the predictability required to curb foreign inflows and bolster the rupee.”
Follow all the updates here:
Feb 01, 2026 5:21:17 PM IST
Budget 2026 LIVE: Sensex, Nifty see worst budget-day trading in at least six years
India’s stock market recorded its worst budget day in six years after the Union Budget 2026 proposed a higher tax to curb F&O trading and new way to tax share buybacks.
The 30-share S&P BSE Sensex fell 1.88%, or 1,546.84 points, to 80,722.94 even as the broader NSE Nifty 50 fell 1.96%, or 495.20 points, to 24,825.45. Fifteen of 16 major sectors ended in the red. The small-caps and mid-caps slid 2.7% and 2.2%, respectively.
Feb 01, 2026 4:50:09 PM IST
Budget 2026 LIVE: Telecom gets ₹73,990 crore for BSNL, BharatNet
The government has increased the outlay for the telecom ministry by nearly 40%, mainly due to BSNL and BharatNet.
“We’ve seen a very healthy increase in allocation from revised estimate of last year, ₹53,000 crore on telecom. We have grown to ₹73,000 crore. That’s almost 40%,” Telecom Minister Jyotiraditya Scindia said after Finance Minister Nirmala Sitharaman’s budget speech in Parliament.
“Our ARPU (average revenue per user) grew by almost 9% from ₹90 to almost ₹99. We would like to touch three digits soon,” he said. “We’ve grown revenue across the board across all our three verticals, and now we need this injection of capex along with our internal cash flows so that we can take BSNL on its path of resurgence.”
Feb 01, 2026 3:29:37 PM IST
Budget 2026 LIVE: STT hike only for F&O trading, govt official says
Feb 01, 2026 12:21:09 PM IST
Budget 2026 LIVE: IT bonanza from FM Sitharaman
Union Budget 2026 LIVE: The government has proposed a tax holiday until 2047 for any foreign company that sets up data centres in India for the world. A safe harbour of 15% on cost for companies provided data services from India is a related entity.
• All IT services will be clubbed under a single category with a common safe harbour margin of 15.5%.
• Threshold for availing safe harbour for IT services to be enhanced to ₹2,000 crore from ₹300 crore.
• A Safe harbour for IT services to be approved by an automatic rule-driven model.
Feb 01, 2026 12:11:56 PM IST
Budget 2026 LIVE: Income Tax
Union Budget 2026 LIVE: The government has extend the timeline to revise ITR with payment of nominal fee.
• Individuals with ITR1 and ITR2 to continue to file till 31 July.
• TDS on sale of immovable property by NRIs to be deducted by resident buyer vs earlier requirement of TAN.
• Taxpayers allowed to update income tax returns even after reassessment but with 10% tax.
Feb 01, 2026 12:08:55 PM IST
Budget 2026 LIVE: For the Creator Economy, Education
Union Budget 2026 LIVE: The government has proposed an Indian Institute of Creative Technologies In Mumbai for India’s animation, visual effects, gaming sector is growing industry, Finance Minister Nirmala Sitharaman says in budget speech.
• Proposes to create five university townships
• Plans academic zones to host multiple colleges, skill centres, residential areas
• Proposal to set up one girls hostel in every district
• A new National Institute of Design will come up in East India.
The budget has an outlay of ₹20,000 crores over the next 5 years in Carbon Capture Utilization and Storage.
Feb 01, 2026 12:03:53 PM IST
Budget 2026 LIVE: Revenue and Spending
Union Budget 2026 LIVE: India has revised higher its expenditure goal to ₹53.5 lakh crore versus ₹49.6 lakh crore in FY26.
• Net market borrowing estimated at ₹11.7 lakh crore
• Gross market borrowing seen at ₹17.2 lakh crore
• Net tax receipts estimated at ₹28.7 lakh crore in FY27
Feb 01, 2026 11:57:27 AM IST
Budget 2026 LIVE: India sets fiscal deficit target at 4.3% in FY27
Union Budget 2027 LIVE: India has set itself a fiscal deficit target of 4.3% of GDP in FY27, Finance Minister Nirmala Sitharaman says in budget speech. India’s Debt-to-GDP ratio estimated at 55.6% in FY27 vs 56.1% in FY26.
“I have fulfilled my commitment made in FY22 to reduce India’s fiscal deficit below 4.5% of GDP,” Sitharaman says.
Feb 01, 2026 11:54:47 AM IST
Budget 2026 LIVE: 16th Finance Commission
Union Budget 2026 LIVE: 16th Finance Commission has recommended 41% tax devolution to states — the highest yet, Finance Minister Nirmala Sitharaman says.
Feb 01, 2026 11:53:09 AM IST
Budget 2026 LIVE: Budget speech talks culture & tourism
Budget 2026 LIVE: Finance Minister Nirmala Sitharaman proposes an archeological revival in her budget speech.
• 15 sites like Sarnath, Hastinapur to become vibrant cultural hubs
• Digital Knowledge Grid to document key heritage places
• New roles for local researchers, historians, tech partners
• Development of tourism, knowledge economy around sites
The budget also provides for the Khelo India mission to sports at the grassroots level. That aligns with employment and youth development goals.
Feb 01, 2026 11:42:12 AM IST
Budget 2026 LIVE: Mahatma Gandhi Gram Samaj
Union Budget 2026 LIVE: The government has proposed to launch the Mahatma Gandhi Gram Samaj initiative to support khadi, handicrafts, FM Nirmala Sitharaman says in budget speech.
Feb 01, 2026 11:40:40 AM IST
Budget 2026 LIVE: The inland waterways focus
Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman, in her budget speech, has laid special emphasis on inland waterways.
1. 20 new national waterways over next five years.
2. A ship-repair ecosystem to be developed in Varanasi, Patna
3. A coastal cargo scheme to increase share of coastal shipping.
4. Support to manufacturing of sea planes in India.
Feb 01, 2026 11:36:41 AM IST
Budget 2026 LIVE: FM lists infrastructure goals in budget speech
Union Budget 2026 LIVE: Apart from a higher capex outlay, the budget has proposed a new Infra Risk Guarantee Fund has been proposed, as well as dedicated REITs for recycling assets of CPSEs.
Feb 01, 2026 11:32:32 AM IST
Budget 2026 LIVE: Focus on labour-intensive MSMEs
Union Budget 2026 LIVE: The government has proposed a ₹10,000-crore SME growth fund to incentivise small industries in India. A Self-Reliant India fund with ₹2,000 crore will support micro enterprises. Here are a few highlights:
1. A new scheme to support states in estabilishing three chemical parks.
2. ₹10,000 crore for container manufacturing in India over five years.
3. A new National Fibre Scheme proposed for self-sufficiency in fibres.
Feb 01, 2026 11:26:21 AM IST
Budget 2026 LIVE: India’s capex plan for FY27
Union Budget 2026 LIVE: India has raised its capex outlay for FY27 to further the reforms push, Finance Minister Nirmala Sitharaman says in budget speech. The capex for FY26 was ₹11 lakh crore.
Feb 01, 2026 11:23:10 AM IST
Budget 2026 LIVE: India Semiconductor Mission 2.0
Union Budget 2026 LIVE: The government has proposed to launch India Semiconductor Mission 2.0 with focus on industry-led R&D and training centres for chips. The outlay has been increased to ₹40,000 crore.
Feb 01, 2026 11:21:39 AM IST
Budget 2026 LIVE: ₹10,000-crore SME growth fund
Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman, in her budget speech, has proposed a ₹10,000-crore SME growth fund.
Feb 01, 2026 11:19:40 AM IST
Budget 2026 LIVE: The key agendas of FY27
Union Budget 2026 LIVE: Union Finance Minister Nirmala Sitharaman has proposed interventions in key areas:
1. The Scale-up of manufacturing in strategic sectors
2. Creation of Champion MSMEs in India
3. Development of strategic economic regions
Feb 01, 2026 11:15:51 AM IST
Budget 2026 LIVE: ₹10,000 crore for biopharma sector
Union Budget 2026 LIVE: The government proposes to allocate ₹10,000 crore for the biopharma sector, Finance Minister Nirmala Sitharaman says in her budget speech.
India will become a global biopharma hub under ‘Biopharma Shakti’ with ₹10,000 crore outlay over five years. It will create network of 1,000 accredited trial sites to bolster biopharma industry.
“The government has undertaken comprehensive reforms for accelerating growth, boosting productivity,” she says. “More than 350 reforms have been rolled out recently. The reform express is well on its way.”
Feb 01, 2026 11:08:45 AM IST
Budget 2026 LIVE: Budget based on three ‘kartavyas’, Nirmala Sitharaman says in budget speech
Union Budget 2026 LIVE: The budget is based on three kartavyas, or responsibilities, says Finance Minister Nirmala Sitharaman in her budget speech.
1. First is to accelerate and sustain economic growth by enhancing competitiveness
2. Second is to fulfil aspirations of our people
3. Third is to ensure that every family, community, region has access to resources, opportunities.
“Threefold approach requires supportive ecosystem. It is a unique, yuva shakti-driven budget,”she says.
Feb 01, 2026 11:05:01 AM IST
Budget 2026 LIVE: Reforms over Rhetoric, says Sitharaman
The government has focused on delivering reforms over mere rhetoric, Finance Minister Nirmala Sitharaman says to begin her budget speech. That’s helped us deliver GDP growth rate of 7.2%, amid geopolitical crises, she says.
“India’s economic trajectory marked by stability over 12 years. The stability has been displayed amid ongoing uncertainty,” the finance minister says. “The government has preferred reform over rhetoric and pursued far-reaching reforms.”
Feb 01, 2026 11:01:00 AM IST
Budget 2026 LIVE: Nirmala Sitharaman begins budget speech
Finance Minister Nirmala Sitharaman has started delivering her ninth consecutive budget speech in Parliament. She is expected to continue the reforms overdrive of the Narendra Modi government.
Feb 01, 2026 10:49:07 AM IST
Budget 2026 LIVE: Cabinet approves Finance Bill, 2026-27
Union Budget 2026-27: The Union Cabinet has approved the Finance Bill 2026 ahead of Finance Minister Nirmala Sitharaman’s budget speech at 11:00 am today.
Feb 01, 2026 10:42:01 AM IST
Budget 2026 LIVE: “This is a ‘deform’ budget, not ‘reform’ budget”
India’s opposition leaders have started arriving at the parliament for Finance Minister Nirmala Sitharaman’s budget speech at 11:00 am. Here’s what they had to say:
Akhilesh Yadav (Samajwadi Party): This is “deform budget” not reforms budget… This budget is for 5% of the country’s population. BJP just tries to set its own people…”
Sachin Pilot (Congress): Despite being in power for years, I think the BJP has focused on issues which are not very impactful on the ground. The Govt has formed a new law to almost scrap MGNREGA. They say that they are reforming it, but the reality is that on average, 35 days of MGNREGA are being used in this country.
Manish Tewari: There are structural problems in the Indian economy which have not been addressed in a decade… Private investment has not kicked in…FDI has declined… I hope the FM will recognise the structural inequities in the Indian economy and would be honest enough to address it…
Feb 01, 2026 10:28:23 AM IST
Budget 2026 LIVE: GST collections up 6.2% to ₹1.93 lakh crore
Gross GST collections rose 6.2% to over ₹1.93 lakh crore in January, mainly on higher revenue from imports. Total refunds declined 3.1% to ₹22,665 crore. Net GST collections, however, grew 7.6% to about ₹1.71 lakh crore in January.
Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier. The lowering of GST rates has impacted revenue collections.
Gross tax collections from domestic transactions grew 4.8% to ₹1.41 lakh crore, while import revenues were up 10.1% to ₹52,253 crore in January.
Feb 01, 2026 10:17:51 AM IST
Budget 2026 LIVE: Sitharaman continues her ‘saree diplomacy’
Finance Minister Nirmala Sitharaman at the Kartavya Bhawan before her budget speech in Parliament at 11:00 am today. (HT)
Union Budget 2026 LIVE: Marking a historic milestone as the first Indian finance minister to present nine consecutive budgets, Nirmala continued her tradition of ‘saree diplomacy’, choosing a garment that weaves together national heritage and economic vision. Read more.
Feb 01, 2026 10:06:11 AM IST
Budget 2026 LIVE: Cabinet meeting underway ahead of budget speech
Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman has arrived at the Parliament to deliver her budget speech at 11:00 am. A cabinet meeting is currently underway.
Feb 01, 2026 9:48:00 AM IST
Budget 2026 LIVE: Sensex, Nifty muted at Open
Union Budget 2026 LIVE: India’s stock market was muted in a special trading session ahead of the budget on Sunday, with investors awaiting support for growth from government capital spending and relief for export-oriented sectors hit by U.S. tariffs.
“Trading on budget day requires extreme caution because it is one of the most volatile days in the year for Indian markets,” said Santosh Meena, head of research at Swastika Investmart.
“Since it’s a Sunday, the market dynamics are unique, institutional investors who typically provide the necessary liquidity and stability may remain largely absent or inactive.”
Follow HT’s live blog on stock market today here.
Feb 01, 2026 9:17:39 AM IST
Budget 2026 LIVE: FM Sitharaman calls on President Murmu
Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman has met President Droupadi M. Murmu ahead of budget speech in parliament at 11:00 am today.
Feb 01, 2026 9:10:21 AM IST
Budget 2026 LIVE: What women entrepreneurs want
Union Budget 2026 LIVE: Women entrepreneurs are not only asking for funding but also want capacity building. Their recommendations include expanded skill plans tailored to women founders and first-time entrepreneurs.
These would complement financial support with training in digital marketing, business planning, export readiness, and compliance—skills that are especially critical in a rapidly digitising economy. Read more.
Feb 01, 2026 8:55:45 AM IST
Budget 2026 LIVE: What are Bihar’s expectations
Union Budget 2026 LIVE: The state of Bihar, which received a special emphasis in last year’s budget, has a wishlist for Finance Minister Nirmala Sitharaman in Union Budget 2026.
The Bihar Chamber of Commerce has said that Bihar should get more funds for industrial growth, higher allocation in state schemes, opening of closed sugar mills and setting up of semiconductor hubs and industrial parks. Read more.
Feb 01, 2026 8:49:19 AM IST
Budget 2026 Expectations: Key things to watch out for
The Union Budget 2026 comes at a time when the global economy is rife with uncertainty stemming from US President Donald Trump. And India, despite growing at its fastest pace in at least 18 months, is feeling the effects.
Against that backdrop, here are 10 key things that Finance Minister Nirmala Sitharaman is likely to focus on in her budget speech.
Feb 01, 2026 8:34:29 AM IST
Budget 2026 LIVE: Nirmala Sitharaman arrives at Kartavya Bhawan
Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman has arrived at the Kartavya Bhawan ahead of her budget speech in Parliament at 11:00 am today.
Feb 01, 2026 8:13:18 AM IST
Budget 2026 LIVE: What to expect and what not to
Union Budget 2026 LIVE: The Economic Survey 2025-26 expects India’s real GDP growth rate at 6.8-7.2% in FY27, and the fiscal consolidation strategy to continue. This leaves little interest in the immediate fiscal calculus of Budget 2026.
Does this make it an unimportant exercise? Far from it. The correct way to read this year’s budget is in the proper context. Here are some numbers that explain it better.
Feb 01, 2026 7:54:30 AM IST
Budget 2026 LIVE: Where will govt revenue come from?
Union Budget 2026 LIVE: The cut in GST and income tax last year to cushion the impact of 50% US tariff on India’s economy has led to a sharp drop in revenues. Net tax collection is seen at ₹28.3 lakh crore in FY26. The government is also aiming to garner ₹50,000 crore from divestments and ₹3 lakh crore in RBI dividend”>up to ₹3 lakh crore in RBI dividend in FY26.
Tax collections will need to rise 11.7% and 43% year-on-year, respectively, in the final four months of FY26 to meet budgeted targets, DBS Bank’s Radhika Rao told Bloomberg. Any shortfall is likely to be offset through a recalibration of spending without jeopardising the fiscal deficit target of 4.4% for FY26.
Feb 01, 2026 7:35:47 AM IST
Budget 2026 LIVE: Unprecedented focus on Part B likely
Union Budget 2026 LIVE:Finance Minister Nirmala Sitharaman’s budget speech is likely to place “unprecedented emphasis” on Part B of the Union Budget 2026-27, HT has learnt from government sources.
The budget speech is expected to look markedly different from those delivered over the past 75 years, with the second part taking centre stage. Read on.
Feb 01, 2026 7:20:21 AM IST
Budget 2026 LIVE: The reforms engine for an express economy
Union Budget 2026 LIVE: The Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman today, is expected to accelerate regulatory reforms by dismantling compliance burdens for the Viksit Bharat 2047 goal, people familiar with the matter said, attributing it to Prime Minister Narendra Modi’s “Reform Express” focus in recent policy directives. Read on.
Economists expect India’s GDP growth rate at 6.5% to 7% in FY27, with inflation around the Reserve Bank of India’s 4% target.
The Economic Survey 205-26 expects growth to marginally slow, pegging it between 6.8% and 7.2% in the fiscal year starting 1 April 2026. Expansion is estimated at 7.4% in FY26.
Feb 01, 2026 7:01:01 AM IST
Budget 2026 Expectations: Real Estate & Affordable Housing
Union Budget 2026 LIVE: The real estate sector is expecting a strong focus on affordable house and rental housing in Finance Minister Nirmala Sitharaman’s budget speech.
Industry stakeholders are seeking a broader definition of affordable housing, tax relief for homebuyers, and incentives for developers to encourage the construction of budget-friendly homes.
Section 24(b): Developers are pushing for the home loan interest deduction limit to be raised from ₹2 lakh to ₹5 lakh for first-time buyers.
Infrastructure Status: A long-standing demand for the real estate sector to receive “Infrastructure Status” to allow easier access to low-cost institutional credit.
Feb 01, 2026 6:45:03 AM IST
Budget 2026 LIVE: Report of 16th Finance Commission due today
Union Budget 2026 LIVE: The report of 16th Finance Commission is likely to be tabled in the Parliament today, along with the Finance Bill for FY27. Finance Commissions are constitutionally mandated bodies that define the revenue sharing between centre and the states every five years.
Fiscal federalism is a widely debated and often emotive issue in the larger political economy space in India. Opinions and takes are often strong, although not necessarily rooted in facts.
Here is a brief summary of the larger environment which characterises fiscal federalism in India.
Feb 01, 2026 6:30:18 AM IST
Budget 2026 Expectations: Agriculture & Rural Economy
The government’s rework of its rural jobs scheme has put a renewed focus on the agriculture sector, for the fine print and beyond.
PM-KISAN: There are strong expectations for the annual benefit to be increased from ₹6,000 to ₹12,000 to boost rural disposable income.
Agritech Mission: Hopes for subsidised drones, AI-based soil testing, and digital marketplaces to modernise farming.
Post-Harvest Demands: Significant focus on building cold storage and warehousing to reduce perishable losses.
Feb 01, 2026 6:15:13 AM IST
Union Budget 2026 LIVE: The path to fiscal consolidation
In last year’s budget, Sitharaman vowed to stick to fiscal consolidation and drew up a roadmap to reduce government debt to 50% of GDP, plus or minus one percentage point, by 2030-31.
According to Bank of America economists Rahul and Smriti Mehra, the revised framework gives the government greater flexibility to pursue a slower pace of fiscal-deficit reduction while gradually lowering debt-servicing costs that rose sharply during the pandemic. The fiscal deficit is seen at 4.2% of GDP in FY27, down from 4.4% in FY26.
India’s government debt rose to an estimated 81.29% of GDP in FY24 from 69% in FY15, according to the International Monetary Fund, largely due to heavy borrowing during the pandemic era.
Feb 01, 2026 6:02:31 AM IST
Budget 2026 expectations: Technology & AI
The Union Budget 2026 is expected to focus on AI, given the outsized rhetoric that the technology is driving globally.
Bharat AI Mission: Reports suggest a potential ₹50,000 crore allocation to build India’s AI ecosystem, focusing on sovereign compute capacity, AI chip design, and data centres.
Semiconductors: The industry is looking at the India Semiconductor Mission) with higher budgetary allocations for approved projects and faster disbursement mechanisms.
Deeptech: Startups are seeking a dedicated deeptech fund and tax holidays for innovation-led firms.
Feb 01, 2026 5:38:55 AM IST
Budget 2026 Expectations: Auto & EV
Here’s a look at the key budget expectation of the auto sector:
FAME-III/PM E-DRIVE: With the current subsidy regime nearing its end, the industry expects an extension or a more robust PM E-DRIVE scheme with higher outlays for two-wheelers and commercial EVs.
GST Rationalisation: A major demand is to sync GST on all EV components (including batteries) to a uniform 5%, down from the current 18% on some parts, to reduce the “inverted duty structure” burden.
Hybrids: There is renewed pressure for concessional GST rates for hybrid vehicles to bridge the gap between ICE and EV.
Feb 01, 2026 5:22:29 AM IST
Is the stock market open for budget today?
The Indian stock market is open today—Sunday, 1 February 2026—for a special live trading session to coincide with Union Budget 2026 today.
Trading hours for today
The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are following standard market timings:
Pre-Open Session: 9:00 am – 9:08 am
Normal Market Hours: 9:15 am – 3:30 pm
Closing Session: 3:40 pm – 4:00 pm
Important rules for today’s session:
Since today is technically a settlement holiday, there are a few specific restrictions to keep in mind:
No T+0 Settlement: Same-day settlement is not available today.
Selling Restrictions: Stocks bought on Friday (30 January) cannot be sold today. Similarly, stocks bought today can only be sold starting tomorrow, Monday.
Fund Availability: Any profits or sale proceeds from Friday’s trades will not be available in your account today. They will be credited Monday.
Commodity Markets: The MCX is also open from 9:00 am to 5:00 pm, and the NCDEX is open from 10:00 am to 5:00 pm.
Track our market blog for the latest on how Union Budget 2026 is moving the stocks today.
Feb 01, 2026 5:15:23 AM IST
Budget 2026 LIVE: The capex plan
Union Budget 2026 LIVE: Capital expenditure is set to remain a key focus of Sitharaman’s budget speech. The government is likely to allocate about ₹12.04 lakh crore for capex, or nearly 3% of GDP, according to a Bloomberg survey.
Some economists cautioned, however, that the government may be nearing a saturation point in expanding and executing large infrastructure projects.
Defence: Budget allocation is projected to rise to ₹2.3 lakh crore in FY26 from 1.8 trillion rupees in FY25.
Railways: An allocation of approximately ₹2.75 lakh crore is expected, with a focus on 400+ new Vande Bharat trains, safety upgrades (Kavach system), and track doubling.
National Infrastructure Pipeline 2.0: A shift toward “quality and resilience” in infrastructure rather than just quantity is anticipated for the 2026–2032 period.
Feb 01, 2026 5:01:27 AM IST
Budget 2026 LIVE: The debt picture
Union Budget 2026 LIVE: Despite its commitment to reducing debt, the government is likely to resort to record bond borrowing. Economists expect gross market borrowing of ₹16.5 lakh crore and net borrowing of ₹11.6 lakh crore. The bond yield is seen at 6.7.% in December 2026.
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