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Nirmala Sitharaman to present ninth Union Budget with reforms in focus

Nirmala Sitharaman will present her ninth consecutive Union Budget today, with expectations centred on reforms, growth priorities, rural development and capital expenditure.

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Union budget 2026

Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget today, marking another key moment in India’s economic policy calendar. The Budget is expected to lay out measures aimed at sustaining growth in what remains the world’s fastest-growing major economy.

For fiscal 2027, policy priorities are likely to include defence, infrastructure, capital expenditure, power and faster growth in affordable housing, according to expectations ahead of the presentation.

Shift in Budget speech structure

This year’s Union Budget is expected to break with a long-standing tradition in the structure of the finance minister’s speech. Until now, most major policy announcements were typically made in Part A, while Part B focused on taxation. This time, Part B is expected to be used to present a broader vision for India’s economic future.

The finance minister is also expected to outline short-term priorities as well as longer-term goals, positioning India’s economic strategy as the country moves deeper into the 21st century, with emphasis on domestic strengths and global ambitions.

Market backdrop ahead of Budget

Ahead of the Budget presentation, equity markets opened lower. Gold and silver futures also declined sharply on the Multi Commodity Exchange, extending the impact of a severe two-day global sell-off.

India’s economy has so far remained resilient despite punitive tariffs imposed by the United States under President Donald Trump. Growth is forecast at 7.4 per cent for the year ending March 31, supported by government spending on infrastructure and tax measures that boosted consumption.

Focus on rural development and jobs

Rural development and agriculture are expected to be among the top priorities in Union Budget 2026. The finance minister may announce higher allocations for programmes aimed at expanding employment opportunities in rural areas.

The Rural Development Ministry has sought a sharp increase in funding for the new employment guarantee scheme, ‘Viksit Bharat – G Ram G’ or VB-G Ram G, proposing a budget of Rs 1.51 lakh crore, a 72 per cent rise. In comparison, the Mahatma Gandhi National Rural Employment Guarantee Scheme received Rs 86,000 crore in the previous Budget.

Fiscal deficit and capital expenditure

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product. With the government having achieved a consolidation path that brought the deficit below 4.5 per cent, markets will closely watch signals on further debt-to-GDP reduction.

Capital expenditure for the current fiscal year has been budgeted at Rs 11.2 lakh crore. The government is expected to continue prioritising capex, with a possible increase of 10 to 15 per cent, as private sector investment remains cautious.

Investment reforms and global challenges

Further policy changes aimed at attracting domestic and foreign investment are also expected. These may include steps to make it easier for foreign companies to invest in defence firms that already hold licences.

The Union Budget 2026 comes at a time of mixed signals globally. While domestic demand remains steady and inflation has eased from recent highs, uncertainties linked to geopolitics, commodity price volatility and uneven monetary policy easing by major central banks continue to pose challenges.

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Annamalai resigns from BJP, signals launch of new political party in Tamil Nadu

Former Tamil Nadu BJP president K Annamalai has submitted his resignation to the party leadership in Delhi, with reports indicating that he is preparing to launch a new political outfit.

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K Annamalai

Former Tamil Nadu BJP president K. Annamalai has resigned from the Bharatiya Janata Party after meeting senior party leaders in New Delhi, marking a significant political development in the state. Reports indicate that he is now preparing to launch a new political party.

According to reports, Annamalai met BJP national president Nitin Nabin and the party’s national general secretary (organisation), B. L. Santhosh, in Delhi and formally submitted his resignation.

The move comes after months of speculation regarding his future within the BJP. Annamalai, a former IPS officer who joined the party in 2020, had emerged as one of the BJP’s most prominent faces in Tamil Nadu and played a key role in expanding the party’s visibility in the state.

Reports suggest that differences over the BJP’s alliance strategy in Tamil Nadu, particularly its association with the AIADMK, were among the factors behind his decision. Sources also indicated that Annamalai had concerns regarding the party’s electoral approach and his future role within the organisation.

Despite his resignation, BJP leaders reportedly attempted to persuade him to reconsider his decision. Discussions were held with the former state chief as the party leadership sought to address his concerns.

Reports further indicate that Annamalai is considering the launch of a new political party focused on Tamil Nadu politics. While details about the proposed outfit are yet to be officially announced, his next move is expected to attract considerable attention in the state’s political landscape.

The development comes at a time when Tamil Nadu politics is witnessing significant shifts, and Annamalai’s decision could have implications for future political alignments in the state.

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G Parameshwara likely to be deputy CM in DK Shivakumar-led Karnataka government

G Parameshwara is expected to be appointed Deputy Chief Minister as the Congress finalizes the cabinet for the incoming DK Shivakumar-led Karnataka government.

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Senior Congress leader and Karnataka Home Minister G Parameshwara is likely to be appointed Deputy Chief Minister in the new government led by DK Shivakumar, according to sources familiar with the ongoing discussions within the party. The move is seen as part of the Congress leadership’s efforts to ensure social and regional representation in the state’s new political setup.

The development comes as DK Shivakumar prepares to take oath as Karnataka’s Chief Minister following his election as the leader of the Congress Legislature Party after Siddaramaiah’s exit from the top post. The swearing-in ceremony is scheduled to take place in Bengaluru on June 3.

Parameshwara is one of the most prominent Dalit faces in Karnataka Congress and has held several important positions in the party and government over the years. Party leaders have reportedly been engaged in consultations over the composition of the new cabinet and the distribution of key positions ahead of the swearing-in ceremony.

The Congress leadership has been working to finalize ministerial appointments and balance representation among various communities and regions. Reports have also suggested that multiple deputy chief minister positions were under consideration as part of the broader cabinet formation exercise.

High-level meetings involving DK Shivakumar, Siddaramaiah and senior Congress leaders have taken place in New Delhi in recent days to finalize the structure of the new government. The discussions have focused on cabinet composition and organizational appointments ahead of the transition.

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CBSE chairman and secretary transferred as Centre orders probe into OSM irregularities

The government has transferred CBSE’s top two officials and ordered an investigation into alleged irregularities in the procurement and implementation of the On-Screen Marking system.

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The Central Government has transferred the chairman and secretary of the Central Board of Secondary Education (CBSE) and constituted a committee to investigate alleged irregularities linked to the board’s On-Screen Marking (OSM) system.

The move comes amid growing concerns over the digital evaluation process used for Class 12 board examinations this year. Several students who sought access to scanned copies of their answer sheets reportedly claimed that the documents uploaded on the verification portal did not match their actual answer books. CBSE officials have acknowledged that around 20 cases involving answer-sheet mismatches were identified during the evaluation process.

Concerns over evaluation system prompt government action

The OSM system was introduced for the evaluation of Class 12 board examinations, replacing the traditional physical checking process with assessment of digitally scanned answer sheets. While the board had defended the technology-driven system as a step towards modernising evaluations, complaints emerged after the declaration of results.

Students and cybersecurity experts also raised concerns regarding technical issues on the portal. Complaints included answer-sheet mismatches, blurred scans, missing pages and payment-related failures during the verification process.

In response to the controversy, the Centre has ordered a probe into the procurement of OSM-related services. Reports indicate that the inquiry will examine whether there were any procedural lapses or irregularities in the procurement process associated with the digital evaluation system.

OSM system faces wider scrutiny

The issue has attracted attention beyond administrative circles. A parliamentary panel has reviewed concerns related to the OSM system, while legal challenges have also been filed seeking examination of the evaluation process.

Earlier, Union Education Minister Dharmendra Pradhan had acknowledged discrepancies in the system and assured students that corrective measures would be taken. He stated that concerns raised regarding the evaluation process would be addressed and action would follow if any wrongdoing was found.

Despite the controversy, the government has maintained that digital evaluation remains an important part of the future of assessment and that the overall framework of the OSM system is likely to continue, subject to reviews and improvements.

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