Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 in the Lok Sabha on February 1. After the Budget is tabled in the Lower House, a copy will also be laid before the Rajya Sabha. Since taking charge in 2019, this will be her ninth consecutive Budget presentation. It will also be the third Budget of the Narendra Modi-led government in its third term.
Once the finance minister completes her Budget speech in Parliament, all key Budget documents will be made available on the official mobile app and website. Following the presentation, the finance minister will also interact with around 30 college students from different regions of the country.
Ahead of the Budget, the finance minister held pre-Budget consultation meetings with a wide range of stakeholders. Suggestions were gathered from experts and representatives of economists, trade unions, the education and health sectors, MSMEs, trade and services, industry, the financial sector, and capital markets.
Agriculture Minister Shivraj Singh Chouhan also conducted extensive pre-Budget discussions on issues related to agriculture and rural development. He later submitted a compiled report of recommendations to the finance minister. During the Budget preparation process, inputs were also invited from citizens, including youth, through various platforms—many of which may reflect in the upcoming Budget.
A key question remains whether the old income tax regime will eventually be discontinued. Many experts believe the old regime is still important to encourage savings and home loan benefits, making it difficult to withdraw it immediately.
Two Tax Regimes Create Confusion; New Regime May Get a Push:
According to experts, having two tax regimes often creates confusion among taxpayers and makes the filing process more complex. However, some analysts feel the old regime may continue for a few more years to allow taxpayers with long-term investment plans to transition smoothly. Overall, indications suggest the government may continue making the new tax regime more attractive, leading to a gradual decline in the use of the old regime.
GST Relief on Health Insurance Expected:
Recent tax changes have provided some relief to policyholders, and there is growing expectation that further GST rationalisation could make health insurance more affordable and accessible. This may help expand insurance coverage across a wider section of the population.
Economic Survey Forecast: 7.4% Growth in 2026:
As per the Economic Survey, India continues to be the world’s fastest-growing major economy. Government estimates suggest the economy is expected to grow by 7.4% in 2026, which is considered better than earlier expectations. In comparison, India recorded 6.5% growth in 2025.
The strong growth outlook has been attributed mainly to a rise in investment and improved performance in the manufacturing sector. The Economic Survey also indicates that stronger production capacity and a more favourable investment environment could further accelerate growth in the coming years.
FAQs on Union Budget 2026–27:
Q1. When will the Union Budget 2026–27 be presented?
The Budget will be presented on February 1, 2026.
Q2. Who will present the Union Budget 2026–27?
Finance Minister Nirmala Sitharaman will present the Budget.
Q3. Will the old income tax regime be abolished?
Experts believe it may continue for a few more years, though the new regime may get a stronger push.
Q4. Is GST relief on health insurance expected?
Yes, GST reduction on health insurance premiums is widely expected.
Q5. What is the economic growth forecast for 2026?
The Economic Survey estimates 7.4% GDP growth for 2026.
