Budget 2026 for 31 January 2026

The Union Budget 2026 is India’s annual financial statement presented by the Central Government that lays down plans for revenue and expenditure for the next financial year from 1 April 2026 to 31 March 2027. It is the most important financial instrument of the government, reflecting priority sectors, economic strategy, taxation policy, social welfare, and fiscal discipline.

The budget determines how India mobilises resources, spends on defence, health, education, infrastructure, and social sectors, and balances growth with fiscal prudence.

What is Union Budget of India?

The Union Budget of India is the annual financial statement of the Government of India, which presents a detailed account of the estimated revenues and expenditures of the Central Government for a particular financial year, running from 1st April to 31st March.

The Union Budget is presented every year by the Union Finance Minister in the Lok Sabha, usually on 1st February, and it requires approval from Parliament before implementation.

Union Budget 2026 Date

Union Budget 2026 will be presented by Finance Minister Nirmala Sitharaman on 1st Februaury, 2026 (Sunday). The upcoming Union Budget 2026 presented by Finance Minister Nirmala Sitharaman is expected to prioritise tax relief, infrastructure expansion, and overall economic growth, even as India navigates global tariff disputes and regional diplomatic challenges. Aligned with the Viksit Bharat@2047 vision, the budget seeks to balance fiscal discipline with strategic investments that promise strong long-term economic returns.

Union Budget History

India’s budgetary tradition began during the colonial era and has grown into a vital instrument guiding the country’s economic and social policies. From the first budget in 1860 to modern times, it reflects India’s evolving fiscal priorities and development goals.

• Colonial Era Beginnings: The first budget in India was presented on 7th April 1860 by James Wilson, the first Finance Member of the Viceroy’s Council.
• Purpose in Early Times: Initially, the budget mainly focused on revenue collection and expenditure for administration under British rule.
• First Post-Independence Budget: After India gained independence, the first budget was presented on 26th November 1947 by R. K. Shanmukham Chetty, setting the foundation for India’s sovereign fiscal policy.
• Evolution Over Time: The Union Budget transformed from a simple statement of revenue and expenditure to a comprehensive economic policy instrument.
• Policy and Social Impact: Today, the budget influences economic growth, social welfare, taxation, infrastructure development, and national priorities.
• Annual Significance: The budget is presented every year, on 1st February, marking the beginning of discussions on economic strategies for the upcoming fiscal year.
• Modern Innovations: Over decades, the budget has incorporated reforms like digital reporting, gender budgeting, environmental considerations, and sector-specific allocations.
• Public Engagement: With growing transparency, the budget now engages citizens, experts, and industries through detailed presentations, press releases, and live sessions.

Union Budget Constitutional Provisions

The Union Budget of India is prepared, presented, and implemented strictly according to the constitutional framework laid down in the Indian Constitution. These provisions ensure financial accountability, legislative control, and transparency in the use of public money.

Note: The term ‘budget’ is nowhere mentioned in the Constitution of India.

Stages of Budget Session in Indian Parliament

The Budget Session of the Indian Parliament is a special session conducted to discuss, scrutinize, and approve the Union Budget for the upcoming financial year. The stages of Budget Session 2026-27 have been discussed below.

1. Presentation of the Budget: The Union Budget is presented in the Lok Sabha on 1st February every year by the Finance Minister of India. During the presentation, the Finance Minister delivers the budget speech. After the speech, the budget is formally laid before both Houses of Parliament.
2. General Discussion: Members of the Lok Sabha discuss the budget as a whole or on any principle involved in it. However, no cut motions can be moved, and the budget is not submitted to a vote at this stage. The Finance Minister has the right to reply at the end of the discussion, clarifying policies and addressing members’ concerns.
3. Scrutiny by Departmental Committees: Each departmental standing committee conducts an in-depth examination of the Demands for Grants of its respective ministry. This process lasts three to four weeks, during which the House remains in recess. At the end of this period, the committees submit their reports to Parliament, suggesting reductions, modifications, or reallocations if necessary.
4. Voting on Demands for Grants: The Lok Sabha votes on the individual demands for grants of each ministry. Only Lok Sabha members can vote on these demands. Expenditure charged on the Consolidated Fund of India is excluded and does not require voting.
5. Passing of Appropriation Bill: No money can be withdrawn from the Consolidated Fund of India except through an Appropriation Bill. This bill authorises the government to withdraw funds and meet its approved expenditures for the financial year.
6. Passing of Finance Bill: The Finance Bill is introduced to give legal effect to the financial proposals of the government, including taxation and revenue measures, for the upcoming year. It is presented as a Money Bill under Article 110 and requires Lok Sabha approval followed by Presidential assent to become the Finance Act.

Documents Presented in Parliament Along with the Union Budget

When the Union Budget is presented in Parliament, it is accompanied by several mandatory documents that provide detailed information on government finances, allocations, and fiscal policies. These documents ensure transparency, accountability, and detailed scrutiny of government expenditure and revenue.

Budget Documents:

• Annual Financial Statement (AFS): The primary budget document detailing the estimated receipts and expenditures of the Government of India, prepared under Article 112 of the Constitution.
• Demands for Grants (DGs): Ministry-wise requests for funds for specific services and schemes, which must be voted upon by the Lok Sabha.
• Finance Bill: Introduces new taxes or amendments to existing tax laws to implement the government’s revenue proposals.
• Appropriation Bill: Authorizes the withdrawal of funds from the Consolidated Fund of India to meet expenditure approved through the budget.

FRBM Act Mandated Statements (Fiscal Responsibility and Budget Management)

• Macro-Economic Framework Statement (MEFS): Evaluates economic growth prospects, fiscal balance, and external sector position for the upcoming year.
• Fiscal Policy Strategy Statement (FPSS): Outlines the government’s fiscal policies and priorities for the financial year.
• Medium-Term Fiscal Policy Statement (MTFPS): Presents medium-term fiscal targets and strategies to ensure sustainable public finances over the next 3 years.