Union Budget 2026 Live Updates: FM Nirmala Sitharaman presents budget in Lok Sabha
The central government is set to present budget in Parliament on Sunday, February 1, with high expectations from citizens, businesses and policy experts. With the economy navigating global uncertainties and domestic growth priorities, stakeholders are keenly watching for announcements on tax relief, policy clarity and measures aimed at boosting consumption, investment and employment.
The Budget is expected to outline the government’s fiscal roadmap for the coming year, balancing welfare commitments with capital expenditure and long-term reforms. From middle-class taxpayers hoping for relief to industry leaders seeking incentives and economists assessing macroeconomic signals, the annual exercise remains a key moment for economic direction-setting.
Union Finance Minister Nirmala Sitharaman will present the Budget at 11 am, marking her ninth consecutive Budget speech — a record first for any Indian finance minister. The milestone underscores continuity in fiscal leadership as the government lays out its vision for the year ahead.
Live Updates
1 Feb 2026 12:27 PM ISTAll IT services will be grouped under a single category with a standard safe harbour margin of 15.5%.
The eligibility threshold for availing safe harbour for IT services will be increased from Rs 300 crore to Rs 2,000 crore.
The safe harbour for IT services will be implemented through an automatic, rule-based approval system.
- 1 Feb 2026 12:21 PM IST
New Income Tax Law Introduced to Simplify Filing and Offer Benefits
From April 1, the new income tax legislation introduces several changes aimed at making tax filing easier for the general public. Simplified forms will be available soon to facilitate smoother submissions.
Notably, tax exemption has been granted on interest earned from road accident compensation. The deadline for filing revised tax returns has been extended from December 31 to March 31, providing taxpayers with additional time.
There is also a reduction in tax on foreign travel expenses. TDS (Tax Deducted at Source) has been lowered from 5% to 2% on education and medical expenses, while manpower supply companies will now face a TDS rate of 1% or 2%.
Furthermore, a special scheme has been introduced to support small taxpayers, aiming to ease their tax compliance process.
- 1 Feb 2026 12:16 PM IST
Nirmala Sitharaman stated that the commitment made in FY22 to reduce the fiscal deficit below 4.5% of GDP has been fulfilled.
In the Revised Estimates for 2025-26, the fiscal deficit is projected to be 4.4% of GDP.
Aligned with the new fiscal prudence framework, the fiscal deficit is estimated to be 4.3% of GDP in FY27.
- 1 Feb 2026 12:12 PM IST
- Divyangjan Kaushal Yojana and Divyang Sahayata Yojana have been launched to support persons with disabilities.
- NIMS in Ranchi and Tezpur have been set up for treating mental health conditions.
- Tourist destinations are being developed in five Purvodaya states in the eastern region.
- 1 Feb 2026 12:00 PM IST
The government announced in the budget that it will construct girls' hostels in every district. Three new AIIMS (All India Institute of Medical Sciences) institutions were also announced. The minister stated that the government is focusing special attention on the youth in this budget.
- 1 Feb 2026 11:55 AM IST
The government plans to create a strong committee focused on education and employment. This committee will focus on areas that can help the services sector grow and will also look at how new technologies like AI are affecting the services industry.
- 1 Feb 2026 11:51 AM IST
The government will introduce a framework to promote the corporate bond market.
- 1 Feb 2026 11:51 AM IST
Foreigners Can Now Invest Directly in Indian Stocks
Individuals residing outside India will be allowed to invest in equities through the Portfolio Investment Scheme.
The individual investment limit is proposed to be raised from 5% to 10%, while the total cap for all such investors is set to increase from 10% to 24%.
This change will enable significant foreign individual investors to hold larger stakes in Indian companies, potentially enhancing price discovery, increasing shareholding diversity, and promoting long-term capital growth.
- 1 Feb 2026 11:49 AM IST
Budget 2026-27 hikes Govt capex to Rs 12.2 lakh crore in big push to infra
New Delhi: Finance Minister Nirmala Sitharaman on Sunday announced a capital expenditure of Rs 12.2 lakh crore in the Budget for 2026-27, to boost big-ticket infrastructure projects for growth and jobs in the economy.
Presenting the Budget, the Finance Minister said that an Infrastructure Risk Development Fund would be set up to accelerate the development of big projects.
She said to push economic growth, the Budget proposes to deliver a powerful push to infrastructure, including highways, ports, railways and power projects, scale up manufacturing in 7 strategic sectors and create champion MSMEs. Read More...
