New Delhi (Rajeev Sharma): Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2026 in Parliament on Sunday, February 1, becoming only the second finance minister in India’s history to deliver the budget on a Sunday. The last such instance was in 1999, when Yashwant Sinha presented the budget under the Atal Bihari Vajpayee-led NDA government. The presentation also marks Sitharaman’s ninth consecutive budget under Prime Minister Narendra Modi.
The budget is being unveiled amid a relatively strong economic outlook. The Economic Survey 2026, presented in Parliament on Thursday, has projected India’s economy to grow by 7.4 per cent in FY26 and remain in the range of 6.8 to 7.2 per cent in FY27. The survey highlighted macroeconomic stability, policy reforms and increased private sector participation as key drivers supporting the growth trajectory.
Tax-related announcements are expected to draw significant attention, particularly any changes to personal income tax and rebates under Section 87A. There has been sustained demand from taxpayers for higher relief to counter inflationary pressures and rising household expenses. However, fiscal analysts have pointed out that the extensive restructuring of tax slabs and rebates in the previous budget, which had a substantial revenue impact, may limit the scope for further large-scale concessions.
Fiscal discipline will also be in focus, with investors and economists tracking whether the government stays on course with its fiscal consolidation plan. The targeted fiscal deficit of 4.4 per cent for 2025–26 will be closely scrutinised to assess the balance between controlling public finances and supporting growth through capital expenditure.
Several banking-related changes are coming into effect on Budget Day, including revisions to IMPS charges, credit card benefits and KYC-related norms announced by leading banks such as State Bank of India, HDFC Bank and Punjab National Bank. These developments add to the significance of February 1 for consumers and markets alike.
There is also anticipation around possible adjustments to customs duty on gold, a move that could influence domestic gold prices, jewellery demand and external trade dynamics.
With assembly elections due later this year in West Bengal and Tamil Nadu, expectations remain high for targeted measures aimed at boosting infrastructure development, welfare initiatives and job creation in poll-bound states.
As the finance minister delivers the Union Budget 2026, the government is expected to outline its economic priorities for the year, strike a balance between fiscal prudence and growth ambitions, and respond to public expectations on taxation and cost-of-living concerns.
