TNI Bureau: Finance Minister Nirmala Sitharaman presented the 88th Union Budget for 2026–27 in Parliament. This is the 74th annual Budget and her 9th consecutive Budget, a record.
At the ‘Viksit Bharat Youth Leadership Summit 2026’, young citizens shared innovative ideas inspired by this youth-driven Budget.
📌The government’s three main priorities are:
Accelerating sustainable economic growth.
Meeting the aspirations of citizens.
Aligning all efforts with the vision of “Sabka Saath, Sabka Vikas”.
The Budget focuses on six key areas: strategic and advanced manufacturing, revival of traditional industries, development of champion MSMEs, strong support for infrastructure, long-term security and stability, and development of urban-based economic zones.
📌Major Announcements
Biopharma Power:
₹10,000 crore allocation over the next five years. Three new NIPER institutes to be set up and seven to be upgraded.
Semiconductor Mission 2.0:
Launched with a budget of ₹40,000 crore.
Rare Earth Corridors:
To be established in Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
Waterways and Transport:
Development of National Waterways-5 connecting Talcher–Angul to Paradip via Kalinganagar through the Brahmani and Mahanadi rivers.
A new freight corridor from Dankuni in the east to Surat in the west.
Industry and Textiles:
Special programme for labour-intensive textile sector. ‘Mahatma Gandhi Gram Swaraj’ scheme for khadi and handicrafts.
Capital Expenditure:
Increased to ₹12.2 lakh crore for FY 2027.
Education and Employment:
Formation of an ‘E2E Standard Committee’ to link education with employment and industry. One girls’ hostel to be built in every district.
MSME Fund:
₹10,000 crore Growth Fund for MSME development.
Tourism:
Establishment of a National Institute of Hospitality.
Others:
ABGC content creator labs in 15,000 secondary schools and 500 colleges.
Support to states to establish five university townships near major industrial and logistics hubs.
Space Science and Education:
Promotion of astrophysics and astronomy through immersive learning.
Hospitality Sector Upgrade:
Upgrading national institutes of hotel management and catering technology into a National Institute of Hospitality.
Tourism Guide Skill Development:
Pilot scheme to train 10,000 tourist guides at 20 major heritage and tourist sites.
Digital Knowledge Grid:
Creation of a National Destination Digital Knowledge Grid for cultural, spiritual and heritage sites.
Wildlife Tourism and Trails:
Special trails for wildlife tourism, including turtle trails along the coasts of Odisha, Karnataka and Kerala, and bird-watching trails near Pulicat Lake.
High-Value Crops in Coastal States:
Support for cultivation of coconut, cashew and cocoa.
Traditional Medicine and Animal Resources:
Expansion of research and training in traditional medicine. Training of 20,000 new veterinary specialists with subsidies.
Orange Economy:
Focus on animation, VFX, gaming and comics to promote the creative economy.
Fisheries Development:
Strengthening the fisheries value chain, with market linkages for startups, women-led groups and fisher organisations.
Women Entrepreneur Marts:
Establishment of community-owned retail centres under cluster-level federations to empower women entrepreneurs.
Purvodaya and Tourism:
Development of five major tourism centres in Purvodaya states under the East Coast Development Corridor.
📌Direct Taxes and Income Tax
New Tax Regime:
Annual income up to ₹12 lakh made tax-free. Standard deduction for salaried employees increased to ₹75,000, making income up to ₹12.75 lakh tax-free.
Senior Citizens:
Standard deduction doubled to ₹1 lakh.
TDS on House Rent:
Threshold increased from ₹2.4 lakh to ₹6 lakh per year.
Education Loans and TCS:
TCS removed on education loans and foreign remittances up to ₹10 lakh.
📌Property and Return Filing
Self-Occupied Properties:
Tax benefit now available on two self-occupied houses instead of one.
Return Filing:
Time limit for filing returns extended to four years.
📌Indirect Taxes and Customs Duty
Make in India Promotion:
Customs duty exemptions on components for electric vehicles, lithium batteries, mobile manufacturing, solar PV cells and 36 life-saving drugs.
