HIGHLIGHTS OF UNION BUDGET 2026-27 : GS TIMES IAS-PCS

Here are the key highlights of the Union Budget 2026–27 presented by the Finance Minister on 1 February 2026:

Total Expenditure: Estimated at ₹53.5 lakh crore.
Total Receipts (Non-debt): Estimated at ₹36.5 lakh crore.
Fiscal Deficit: Targeted at 4.3% of GDP for 2026-27 (down from 4.4% in the revised estimates of 2025-26).
Capital Expenditure: Increased to ₹12.2 lakh crore to drive infrastructure growth.
Net Tax Receipts: Estimated at ₹28.7 lakh crore.
Debt-to-GDP ratio: 55.6% (slightly lower than revised estimate for 2025-26).

Biopharma SHAKTI: ₹10,000 crore outlay over 5 years to make India a global biopharma hub.
Semiconductor Mission (ISM 2.0): Focus on full-stack Indian IP, equipment manufacturing, and supply chain fortification.
Rare Earth Corridors: To be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
Electronics: Outlay for the Electronics Components Manufacturing Scheme increased to ₹40,000 crore.
Container Manufacturing: Over ₹10,000 crore allocated to create a competitive domestic ecosystem.

High-Speed Rail: Seven new corridors planned, Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri.
Waterways: 20 new National Waterways to be operationalized over 5 years.
Freight Corridors: New dedicated corridors connecting Dankuni (East) to Surat (West).
Seaplanes: Introduction of a Seaplane VGF (Viability Gap Funding) scheme to enhance remote connectivity.

Education to Employment: A high-powered committee to focus on the services sector.
Allied Health: 100,000 Allied Health Professionals to be added over 5 years; 5 Regional Medical Hubs for medical tourism.
Orange Economy: AVGC (Animation, Visual Effects, Gaming, Comics) labs to be set up in 15,000 schools and 500 colleges.
Mental Health: Establishment of NIMHANS-2 in North India.

Bharat-VISTAAR: A multilingual AI tool to integrate agricultural resources and portals for farmers.
High-Value Crops: Focus on coconut, sandalwood, cocoa, and cashew in coastal regions.
Reservoirs: Integrated development of 500 reservoirs and Amrit Sarovars.

New Income Tax Act: A new simplified Act to come into effect from April 2026.
TCS Rationalization: * Reduced to 2% (from 5-20%) on overseas tour packages.
- Reduced to 2% for education and medical remittances.
Ease of Compliance:
- Staggered timelines for filing tax returns.
- One-time 6-month foreign asset disclosure scheme for small taxpayers.
- Exemption of interest awarded by Motor Accident Claims Tribunals for natural persons.
Securities Transaction Tax (STT): Increased on Futures (to 0.05%) and Options (to 0.15%).
Customs: Removal of the ₹10 lakh value cap on courier exports to help small businesses/artisans.

Purvodaya: Focus on Eastern states (Odisha, West Bengal, Bihar, Jharkhand, Chhattisgarh) with industrial corridors and tourism destinations.
Buddhist Circuits: Targeted development in North-Eastern states like Arunachal Pradesh and Sikkim.

HIGHLIGHTS OF UNION BUDGET 2026-27