Union Budget 2026-27 Summary: Key Numbers, Tax Changes, New Schemes and Banking/Market Announcements (+ Quiz)

Union Budget 2026-27, presented on 1 February 2026, is the base for Budget questions in RBI Grade B, SEBI Grade A and NABARD exams in 2026-27. Here are the numbers and announcements that matter most.

Basics

PointDetail
Presented on1 February 2026
Finance MinisterNirmala Sitharaman (her 9th consecutive Budget, approx)
Constitutional basisArticle 112 (Annual Financial Statement)
Fiscal frameworkFRBM Act, 2003; move from a fiscal deficit target to a debt-to-GDP anchor

Key numbers (Budget Estimates 2026-27)

ItemAmount
Total expenditure₹53.5 lakh crore
Capital expenditure₹12.2 lakh crore
Fiscal deficit4.3% of GDP (revised estimate for 2025-26: 4.4%)
Net tax receipts₹28.7 lakh crore
Total non-debt receipts₹36.5 lakh crore
Gross market borrowing₹17.2 lakh crore (net about ₹11.7 lakh crore)
Debt-to-GDP (Centre)55.6% (target 50% ± 1% by 2030-31)
Finance Commission grants to statesAbout ₹1.4 lakh crore
Vertical devolution41% (16th Finance Commission accepted)

Direct tax changes

ChangeDetail
New lawIncome-tax Act, 2025 replaces the 1961 Act from 1 April 2026
Income tax slabsNo change in rates (the big relief came in Budget 2025-26: no tax up to ₹12 lakh under the new regime)
Filing deadlinesITR-1/2: 31 July; non-audit business and trusts: 31 August; revised return till 31 March
MATCut to 14%, as a final tax from April 2026
BuybacksTaxed as capital gains for shareholders
TCS under LRSCut to 2% for overseas tours, education and medical purposes
AppealsPre-deposit for appeals cut from 20% to 10%
OffencesMost tax offences: maximum 2 years’ imprisonment (down from 7)
Foreign assetsOne-time 6-month disclosure window for undisclosed foreign assets
STTFutures 0.05%; options 0.15%

Customs and indirect tax

  • 17 cancer drugs and 7 rare-disease medicines exempted from customs duty.
  • Duty on personal-use imports cut from 20% to 10%.
  • ₹10 lakh cap per consignment on courier exports removed.
  • Customs Integrated System to be rolled out in 2 years.

New missions, funds and schemes

AnnouncementDetail
Biopharma SHAKTI₹10,000 crore over 5 years for biopharma
Electronics Components Manufacturing SchemeOutlay raised to ₹40,000 crore
Carbon capture (CCUS)₹20,000 crore over 5 years
Container manufacturing₹10,000 crore over 5 years
SME Growth Fund₹10,000 crore
City Economic Regions₹5,000 crore per region
Infrastructure Risk Guarantee FundNew
Bharat-VISTAARAI-based advisory for farmers
SHE-MartsRetail outlets run by rural women
Khelo India MissionSports development
Rare Earth Corridors and Chemical ParksStrategic minerals and chemicals
Infrastructure targets20 new National Waterways, 7 high-speed rail corridors, 4,000 e-buses for Purvodaya states

Banking, NBFC and capital market announcements

AreaAnnouncement
BankingHigh-Level Committee on Banking for Viksit Bharat
NBFCsRestructuring of Power Finance Corporation and REC
Bond marketMarket-making framework for corporate bonds
Foreign investmentPersons resident outside India (individuals) can hold up to 10% in a listed company (up from 5%)
Municipal bonds₹100 crore incentive for high-value municipal bond issues

Exam-ready one-liners

  1. Budget 2026-27 was presented on 1 February 2026.
  2. Total expenditure: ₹53.5 lakh crore; capex: ₹12.2 lakh crore.
  3. Fiscal deficit target: 4.3% of GDP.
  4. Debt-to-GDP target: 50% ± 1% by 2030-31.
  5. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.
  6. STT on futures: 0.05%; on options: 0.15%.
  7. MAT cut to 14%.
  8. A High-Level Committee on Banking for Viksit Bharat was announced.

Related reading

Quiz: test yourself

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Based on Budget 2026-27 documents as reported. Check indiabudget.gov.in for the full speech and documents.

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