The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, is a strategic roadmap toward Viksit Bharat 2047, emphasizing job creation, MSME growth, and technological self-reliance.
Here is a detailed 100-point summary of the key highlights:
I. Macroeconomic & Fiscal Discipline
* Capital Expenditure: Increased by 9% to a record ₹12.2 lakh crore to sustain infra growth.
* Fiscal Deficit: Target set at 4.3% of GDP for FY27 (down from 4.4%).
* Total Budget Outlay: Pegged at ₹53.5 lakh crore.
* GDP Growth: Projected at 6.8%–7.2% for the upcoming fiscal year.
* Debt-to-GDP: Medium-term target to bring it down to 50% (±1%) by 2030.
* Market Borrowing: Estimated gross borrowing at ₹17.2 lakh crore.
* Tax Devolution: ₹1.4 lakh crore to be devolved to states.
* Net Tax Receipts: Estimated at ₹28.7 lakh crore.
* Capex Share: Public capex has grown from ₹2 lakh crore in 2014 to over ₹12 lakh crore now.
* State Support: ₹1.5 lakh crore in interest-free loans provided to states for capital projects.
II. Direct & Indirect Taxation
* New Income Tax Act, 2025: Set to replace the 1961 Act starting April 1, 2026.
* Tax Slabs (New Regime): No changes to the existing rates for FY 2026–27.
* Standard Deduction: Effectively pushes the zero-tax limit to ₹12.75 lakh for salaried individuals.
* Simplified ITR: New, redesigned forms to reduce the text and sections of tax laws by 50%.
* ITR Deadline: Filing for revised returns extended to July 31.
* TDS Refunds: Allowed even if ITR is filed after the deadline, without penal charges.
* STT on Futures: Increased from 0.02% to 0.05%.
* STT on Options: Premium tax increased from 0.10% to 0.15%.
* Buyback Tax: Proceeds for all shareholders to be taxed as Capital Gains.
* Minimum Alternate Tax (MAT): Rate reduced from 15% to 14% and treated as final tax.
* Customs (Pharma): 17 life-saving cancer drugs exempted from basic customs duty.
* Customs (Seafood): Duty-free import limit for seafood processing inputs raised to 3%.
* Customs (Aviation): Components for civilian aircraft manufacturing exempted from duty.
* TCS on Travel: Tax on overseas tour packages reduced to a flat 2% (from 5%/20%).
* TCS on LRS: Education and medical remittances abroad reduced to 2%.
* Cloud Services Tax: Tax holiday till 2047 for foreign companies using Indian data centers.
* Tribunal Awards: Interest awarded by Motor Accident Claims Tribunals exempted from tax.
* Manpower TDS: Reclassified under "contractor payments" (1% or 2%) to end ambiguity.
* Dispute Resolution: New scheme to close tax disputes by paying a fee in lieu of penalty.
* Gold/Silver: Customs duty rationalization led to a price dip post-announcement.
III. MSMEs & Industrial Manufacturing
* Champion MSMEs Fund: New ₹10,000 crore fund for high-growth small businesses.
* Self-Reliant India (SRI) Fund: Top-up of ₹2,000 crore for risk capital.
* TReDS Mandatory: All CPSEs must use TReDS to settle MSME payments.
* GeM–TReDS Link: Integration to provide MSMEs with faster, cheaper invoice discounting.
* Credit Guarantees: Enhanced support for MSMEs through the CGTMSE scheme.
* Electronic Components: Outlay for manufacturing increased to ₹40,000 crore.
* ISM 2.0: Launch of India Semiconductor Mission 2.0 for ecosystem building.
* Rare Earth Corridors: Dedicated corridors in Odisha, TN, Andhra, and Kerala.
* Chemical Parks: Three dedicated plug-and-play chemical parks planned per state.
* Container Manufacturing: ₹10,000 crore outlay over 5 years for shipping containers.
* Textile Upgrade: Samarth 2.0 launched to modernize technical textile clusters.
* Khadi Support: Mahatma Gandhi Gram Swaraj Initiative to boost khadi production.
* Sports Goods: Reforms to make India a global hub for sports manufacturing.
* Production Linked Incentive (PLI): Extended for medical devices and toys.
* Deep Tech Fund: Established to support high-end R&D in strategic sectors.
IV. Infrastructure & Railways
* High-Speed Rail: Seven new corridors (e.g., Mumbai–Pune, Hyderabad–Bengaluru).
* Freight Corridors: New East-West corridor from Dankuni to Surat.
* Urban Challenge Fund: ₹1 lakh crore allocated for urban infra reforms.
* City Economic Regions: ₹5,000 crore per city for Tier II/III hub development.
* Asset Recycling: Targeted recycling of ₹10 lakh crore in CPSE assets.
* Infra Risk Guarantee Fund: To help private developers manage construction risks.
* Coastal Cargo: Scheme to double inland waterway share to 12% by 2047.
* Dedicated REITs: To be set up for recycling real estate assets of CPSEs.
* Ship Repair: Ecosystems to be established at Varanasi and Patna.
* Waterways Training: Regional Institutes of Excellence for maritime skills.
* Atomic Energy: Amendments to allow private sector partnerships in nuclear power.
* Mountain Trade: Ecologically sustainable trade initiatives for UK and J&K.
* Trekking Trails: Development of mountain trails in HP and Uttarakhand.
* BharatNet: Expansion to provide high-speed broadband to all rural schools.
* Logistics Hubs: Transformation of 15 major cities into world-class logistics hubs.
V. Agriculture & Rural Prosperity
* PM Dhan-Dhaanya Krishi Yojana: Programme to develop specialized "Agri Districts."
* National Mission on Seeds: Focus on climate-resilient, high-yielding varieties.
* Makhana Board: Set up in Bihar to boost production and global exports.
* Coconut Promotion: New scheme to replace old trees, benefiting 10 million farmers.
* Plantation Crops: Dedicated programs for Cashew and Cocoa self-reliance.
* Sandalwood: Efforts with states to revive the Indian sandalwood ecosystem.
* Bharat-VISTAAR: Multilingual AI platform for customized agri-advisory.
* Fisheries: Integrated development of 500 reservoirs and Amrit Sarovars.
* Animal Husbandry: Entrepreneurship scheme to create high-quality rural jobs.
* Cotton Mission: New mission to increase cotton productivity and quality.
* Agri-Credit: Targeted coverage of 100 districts under enhanced KCC credit.
* Gene Bank: Second Gene Bank with 10 lakh germplasm lines for food security.
* Digital Agriculture Mission: Digital crop surveys and registry for 6 crore farmers.
VI. Healthcare & Social Welfare
* Medical Seats: Plan to add 75,000 seats over 5 years (10,000 this year).
* Biopharma Shakti: ₹10,000 crore outlay for biopharma manufacturing.
* Regional Medical Hubs: Five regional hubs via PPP (Hospitals + Education).
* Oncology Clinics: 200 new day-care centers for cancer treatment.
* Caregiver Training: Training of 1.5 lakh specialized caregivers for the elderly.
* Senior Care System: Dedicated support framework for geriatric care.
* Nursing Upgrade: Massive push to upgrade nursing and paramedic institutes.
* Ayurveda Expansion: Three new All India Institutes of Ayurveda.
* Telemedicine: Expansion of services to cover remote tribal blocks.
* Rare Diseases: Customs relief on 7 rare disease medicines.
* Mental Health: Integration of mental health checkups in the Ayushman Bharat scheme.
VII. Education, Skilling & Women
* Girls’ Hostels: One hostel to be built in every district.
* Lakhpati Didi 2.0: Helping women move from credit-links to full enterprise ownership.
* SHE-Marts: Dedicated marketplaces for rural women-led enterprises.
* Centre of Excellence in AI: ₹500 crore outlay for AI in education.
* IIT Expansion: Addition of 6,500 seats in IITs.
* Modular Courses: Short-term skills via ICAI and ICSI for professional readiness.
* Divyangjan Kaushal Yojana: Employment-linked skilling for persons with disabilities.
* AVGC Labs: Content creation labs in 15,000 schools.
* Research Fellowship: Enhancement of the PM Research Fellowship outlay.
* Teacher Training: Focused capacity building for digital-age pedagogy.
VIII. Energy, Tech & Others
* Green Transition: ₹20,000 crore for carbon capture and storage projects.
* Biogas Blending: Incentives for blending biogas into the natural gas grid.
* Critical Minerals: Support for mining and processing of lithium and cobalt.
* Telescope Facilities: Four new astronomical telescope facilities for research.
* Tourist Guides: Pilot scheme to upskill 10,000 guides at heritage sites.
* Digital Knowledge Grid: Central repository to document cross-sectoral data.

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