Prime Minister Narendra Modi on Saturday said the Union Budget 2026 strikes a fine balance between high capital expenditure and sustained economic growth, calling it a roadmap for long-term national development.

Speaking after Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget, the prime minister said the proposals reflect a vision of trust-based governance and a human-centric economic framework. He added that India is not just focused on being the fastest-growing economy but is working towards becoming the world’s third-largest economy.

PM Modi said the Budget also reinforces India’s strong global standing and will provide fresh momentum to the country’s reform agenda. According to him, the measures announced will energise what he described as India’s “reform express”.

The prime minister highlighted the Budget’s focus on promoting tourism in the northeastern region, noting that it would create new opportunities and support regional development.

On fiscal management, the finance minister retained the states’ share in the divisible pool of central taxes at 41 per cent. She announced that Rs 1.4 lakh crore has been provided to states as Finance Commission grants for 2026–27, in line with the recommendations of the commission.

The Finance Commission, chaired by Arvind Panagariya, had submitted its report to the President in November 2025 after consultations with states and Union Territories, several of which had sought a higher share.

Sitharaman pegged the fiscal deficit for 2026–27 at 4.3 per cent of GDP, lower than the revised estimate of 4.4 per cent for 2025–26. She also said the debt-to-GDP ratio is projected to decline to 55.6 per cent in 2026–27 from 56.1 per cent in the previous fiscal.

A gradual reduction in the debt burden will help free up resources for priority sectors by lowering interest outgo, the finance minister said.

Presenting her ninth consecutive Union Budget today, Finance Minister Nirmala Sitharaman announced a Rs 40,000 crore allocation for the semiconductor industry under the newly launched India Semiconductor Mission 2.0. The move aims to build on the momentum of the first semiconductor mission initiated in January 2022.

Sitharaman highlighted that the mission will focus on industry-led research and training centres, as well as the production of equipment and materials for full-stack Indian intellectual property (IP).

“Semiconductor Mission 2.0 will focus on producing equipment and materials designed for full-stack Indian IP,” she said.

The Finance Minister also emphasised that the Budget follows a path of reforms over rhetoric, aiming to position India on the trajectory toward becoming a Viksit Bharat.

Earlier this month, Union Electronics and IT Minister Ashwini Vaishnaw stated that India is on track to begin commercial semiconductor chip production in 2026, in line with the timeline of the original semiconductor mission. Pilot production has already started at three plants in 2025, with four plants expected to begin operations this year.

Analysts note that India, as the world’s fastest-growing major economy, is expected to continue prioritising defence, infrastructure, capital expenditure, power, and affordable housing in fiscal year 2026–27.

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties