


{"id":83986,"date":"2026-04-15T11:15:56","date_gmt":"2026-04-15T05:45:56","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=83986"},"modified":"2026-04-16T17:33:09","modified_gmt":"2026-04-16T12:03:09","slug":"union-budget-2026","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/union-budget-2026\/","title":{"rendered":"Union Budget 2026, Key Highlights, Constitutional Provisions, Stages"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Union Budget 2026 is India\u2019s 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The budget determines how India mobilises resources, spends on defence, health, education, infrastructure, and social sectors, and balances growth with fiscal prudence.<\/span><\/p>\n<h2><b>What is Union Budget of India?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Union Budget is presented every year by the <\/span><b>Union Finance Minister in the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/lok-sabha\/\" target=\"_blank\">Lok Sabha<\/a><\/b><span style=\"font-weight: 400;\">, on <\/span><b>1st February<\/b><span style=\"font-weight: 400;\">, and it requires approval from Parliament before implementation.<\/span><\/p>\n<p><strong>Also Read: <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/income-tax-slab\/\" target=\"_blank\">New Income Tax Slab 2026-27<\/a><\/strong><\/p>\n<h2><strong>Union Budget 2026-27 PDF Download<\/strong><\/h2>\n<p><strong data-start=\"0\" data-end=\"28\" data-is-only-node=\"\">Union Budget 2026-27 PDF<\/strong> presents the Government of India\u2019s roadmap for sustained economic growth, fiscal discipline, and inclusive development under the vision of <em data-start=\"168\" data-end=\"183\">Viksit Bharat<\/em>. It highlights key policy measures across manufacturing, infrastructure, agriculture, services, taxation, and social sectors with a strong focus on reform-led growth.<\/p>\n<p style=\"text-align: center;\"><strong><center><a class=\"fasc-button fasc-size-medium fasc-type-glossy fasc-rounded-medium fasc-style-bold\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/vajiramandravi.com\/current-affairs\/wp-content\/uploads\/2026\/02\/Union-Budget-2026-27.pdf\" target=\"_blank\">Download Union Budget 2026-27 Key Highlights PDF<\/a><\/center><\/strong><\/p>\n<h2><strong>Union Budget 2026 Highlights<\/strong><\/h2>\n<p>Union Budget 2026 has been presented by Finance Minister Nirmala Sitharaman on <strong>1st Februaury, 2026 (Sunday)<\/strong>. Aligned with the Viksit <strong>Bharat@2047 vision<\/strong>, the budget seeks to balance fiscal discipline with strategic investments that promise strong long-term economic returns. The key highlights of the Union Budget 2026-27 has been discussed below in detail.<\/p>\n<h3 style=\"text-align: center;\"><strong>Rupee Comes From<\/strong><\/h3>\n<p><img decoding=\"async\" class=\"wp-image-85320 aligncenter\" src=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133925.png\" alt=\"Rupee Comes from\" width=\"711\" height=\"444\" srcset=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133925.png 818w, https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133925-768x480.png 768w\" sizes=\"(max-width: 711px) 100vw, 711px\" \/>&nbsp;<\/p>\n<h3 style=\"text-align: center;\"><strong>Rupee Goes to&nbsp;<\/strong><\/h3>\n<p><img decoding=\"async\" class=\"size-full wp-image-85321 aligncenter\" src=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133944.png\" alt=\"Rupee Goes to\" width=\"826\" height=\"513\" srcset=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133944.png 826w, https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-133944-768x477.png 768w\" sizes=\"(max-width: 826px) 100vw, 826px\" \/><\/p>\n<h3 style=\"text-align: center;\"><strong>Receipts<\/strong><\/h3>\n<p><img decoding=\"async\" class=\"size-full wp-image-85327 aligncenter\" src=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134506.png\" alt=\"Receipts\" width=\"852\" height=\"591\" srcset=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134506.png 852w, https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134506-768x533.png 768w\" sizes=\"(max-width: 852px) 100vw, 852px\" \/><\/p>\n<h3 style=\"text-align: center;\"><strong>Expenditures<\/strong><\/h3>\n<h3 style=\"text-align: center;\"><img decoding=\"async\" class=\"size-full wp-image-85323 alignnone\" src=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134516.png\" alt=\"Expenditure\" width=\"870\" height=\"618\" srcset=\"https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134516.png 870w, https:\/\/d35xcwcl37xo08.cloudfront.net\/current-affairs-wp-uploads\/2026\/02\/Screenshot-2026-02-01-134516-768x546.png 768w\" sizes=\"(max-width: 870px) 100vw, 870px\" \/>&nbsp;<\/h3>\n<h3 data-start=\"293\" data-end=\"338\"><strong>1. Overall Vision and Economic Philosophy<\/strong><\/h3>\n<ul>\n<li data-start=\"341\" data-end=\"558\">The Union Budget 2026\u201327 is guided by the theme <strong data-start=\"389\" data-end=\"462\">\u201cAction over Ambivalence, Reform over Rhetoric, People over Populism\u201d<\/strong>, aligning with the long-term vision of <strong data-start=\"502\" data-end=\"519\">Viksit Bharat<\/strong><\/li>\n<li data-start=\"341\" data-end=\"558\">The budget focuses on <strong data-start=\"583\" data-end=\"682\">moderate inflation, sustained high growth (~7%), fiscal discipline, and macroeconomic stability<\/strong>, while balancing ambition with social inclusion.<\/li>\n<li data-start=\"734\" data-end=\"877\">Strong emphasis is placed on <strong data-start=\"763\" data-end=\"876\">reduced import dependence, energy security, domestic manufacturing capacity, and public investment-led growth<\/strong>.<\/li>\n<\/ul>\n<h3 data-start=\"884\" data-end=\"927\"><strong>2. Yuva Shakti &amp; Inclusive Growth Focus<\/strong><\/h3>\n<ul>\n<li data-start=\"930\" data-end=\"1051\">The budget is <strong data-start=\"944\" data-end=\"966\">Yuva Shakti-driven<\/strong>, targeting employment generation, skill development, and entrepreneurship for youth.<\/li>\n<li data-start=\"1054\" data-end=\"1185\">Priority is given to <strong data-start=\"1075\" data-end=\"1128\">poor, underprivileged, and disadvantaged sections<\/strong>, reinforcing the vision of <strong data-start=\"1156\" data-end=\"1184\">Sabka Saath, Sabka Vikas<\/strong>.<\/li>\n<li data-start=\"1188\" data-end=\"1228\">The government outlines three Kartavyas:\n<ul>\n<li data-start=\"1233\" data-end=\"1277\"><strong>First Kartavya: <\/strong>Accelerate and sustain economic growth<strong><br \/>\n<\/strong><\/li>\n<li data-start=\"1282\" data-end=\"1327\"><strong>Second Kartavya: <\/strong>Fulfil aspirations of our people<\/li>\n<li data-start=\"1332\" data-end=\"1423\"><strong>Third Kartavya: Vision of Sabka Saath, Sabka Vikas<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"1430\" data-end=\"1478\"><strong>3. Sustaining Momentum of Structural Reforms<\/strong><\/h3>\n<ul>\n<li data-start=\"1481\" data-end=\"1628\">Over <strong data-start=\"1486\" data-end=\"1512\">350 structural reforms<\/strong> have been implemented, including <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/goods-and-services-tax\/\" target=\"_blank\"><strong>GST<\/strong><\/a> simplification, labour code notification, and quality control rationalisation.<\/li>\n<li data-start=\"1631\" data-end=\"1753\">High Level Committees have been formed.<\/li>\n<li data-start=\"1756\" data-end=\"1919\">Central Government is working with the State Governments on <strong>deregulation<\/strong> and reducing compliance requirements.<\/li>\n<\/ul>\n<h3 data-start=\"1926\" data-end=\"1981\"><strong>4. Manufacturing Push: Strategic &amp; Frontier Sectors<\/strong><\/h3>\n<ul>\n<li data-start=\"1982\" data-end=\"2415\">\n<p data-start=\"1984\" data-end=\"2091\">Major schemes announced for strengthening <strong data-start=\"2026\" data-end=\"2079\">high-value and technology-intensive manufacturing<\/strong>, including:<\/p>\n<ul>\n<li data-start=\"2096\" data-end=\"2141\">Revival of <strong data-start=\"2107\" data-end=\"2141\">200 legacy industrial clusters<\/strong><\/li>\n<li data-start=\"2146\" data-end=\"2187\"><strong data-start=\"2146\" data-end=\"2187\"><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/india-semiconductor-mission-ism\/\" target=\"_blank\">India Semiconductor Mission (ISM)<\/a> 2.0<\/strong><\/li>\n<li data-start=\"2192\" data-end=\"2239\"><strong data-start=\"2192\" data-end=\"2239\">Electronics Components Manufacturing Scheme<\/strong><\/li>\n<li data-start=\"2244\" data-end=\"2264\"><strong data-start=\"2244\" data-end=\"2264\">Biopharma SHAKTI<\/strong><\/li>\n<li data-start=\"2269\" data-end=\"2415\">Dedicated <strong data-start=\"2279\" data-end=\"2297\">Chemical Parks<\/strong>, <strong data-start=\"2299\" data-end=\"2326\">Container Manufacturing<\/strong>, and <strong data-start=\"2332\" data-end=\"2364\">Rare Earth Permanent Magnets<\/strong> initiatives<\/li>\n<li data-start=\"2269\" data-end=\"2415\">Hi-Tech Tool Rooms in CPSEs<\/li>\n<li data-start=\"2269\" data-end=\"2415\">Scheme for Container Manufacturing<\/li>\n<li data-start=\"2269\" data-end=\"2415\">Dedicated initiative for the manufacturing of<strong> affordable Sports Goods<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 data-start=\"2553\" data-end=\"2604\"><strong>5. Tax &amp; Customs Reforms to Boost Manufacturing<\/strong><\/h3>\n<ul>\n<li data-start=\"2607\" data-end=\"2722\">Five-year income tax exemption for <strong data-start=\"2642\" data-end=\"2721\">non-residents supplying capital goods to toll manufacturers in bonded zones<\/strong>.<\/li>\n<li data-start=\"2725\" data-end=\"2820\">Expansion of <strong data-start=\"2738\" data-end=\"2765\">duty-free import limits<\/strong> for seafood, footwear, leather, and textile exporters.<\/li>\n<li data-start=\"2823\" data-end=\"2946\">Deferred duty payment facilities for trusted manufacturers and recognition of regular importers with trusted supply chains.<\/li>\n<li data-start=\"2949\" data-end=\"3090\">One-time concessional duty window for eligible SEZ manufacturing units to sell in Domestic Tariff Area<\/li>\n<\/ul>\n<h3 data-start=\"3097\" data-end=\"3130\"><strong>6. MSME Growth as \u2018Champions\u2019<\/strong><\/h3>\n<ul>\n<li data-start=\"3133\" data-end=\"3240\">Introduction of a <strong data-start=\"3151\" data-end=\"3184\">\u20b910,000 crore SME Growth Fund<\/strong> and \u20b92,000 crore top-up to the <strong>Self-Reliant India Fund<\/strong>.<\/li>\n<li data-start=\"3243\" data-end=\"3361\"><strong data-start=\"3243\" data-end=\"3269\">Mandatory use of TReDS<\/strong> by CPSEs for MSME procurement, with CGTMSE-backed credit guarantee for invoice discounting.<\/li>\n<li data-start=\"3364\" data-end=\"3435\">Linking <strong data-start=\"3372\" data-end=\"3390\">GeM with TReDS<\/strong> to ensure faster and cheaper <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/msme\/\" target=\"_blank\"><strong>MSME<\/strong><\/a> financing.<\/li>\n<li data-start=\"3438\" data-end=\"3576\">Development of <strong data-start=\"3453\" data-end=\"3473\">Corporate Mitras<\/strong> in Tier-II and Tier-III towns for affordable compliance support&nbsp;<\/li>\n<\/ul>\n<h3 data-start=\"3583\" data-end=\"3624\"><strong>7. Services Sector as a Growth Engine<\/strong><\/h3>\n<ul>\n<li data-start=\"3732\" data-end=\"3823\">Establishment of a <strong data-start=\"3751\" data-end=\"3801\">High-Powered Education-to-Employment Committee<\/strong> focusing on services.<\/li>\n<li>Five <strong data-start=\"3632\" data-end=\"3662\">Medical Value Tourism Hubs<\/strong> to be developed in partnership with states and the private sector.<\/li>\n<li data-start=\"3826\" data-end=\"3935\">Expansion of <strong data-start=\"3839\" data-end=\"3863\">AYUSH infrastructure<\/strong>, allied health institutions, caregiver training, and AVGC creator labs.<\/li>\n<li data-start=\"3938\" data-end=\"4078\">Strong push to sports, design, healthcare, and the orange economy through institutional strengthening<\/li>\n<li data-start=\"3938\" data-end=\"4078\"><strong>Khelo India Mission &#8211;<\/strong> integrated talent development pathweay, systematic coaching development, intergration of science &amp; technology and development of sports infrastructure.<\/li>\n<\/ul>\n<h3 data-start=\"4085\" data-end=\"4120\"><strong>8. Tourism, Education &amp; Culture<\/strong><\/h3>\n<ul>\n<li data-start=\"4123\" data-end=\"4251\">Development of <strong data-start=\"4138\" data-end=\"4165\">15 archaeological sites<\/strong> into experiential destinations and a <strong data-start=\"4203\" data-end=\"4250\">National Destination Digital Knowledge Grid<\/strong>.<\/li>\n<li data-start=\"4254\" data-end=\"4355\">Pilot upskilling of <strong data-start=\"4274\" data-end=\"4299\">10,000 tourist guides<\/strong> and setting up a <strong data-start=\"4317\" data-end=\"4354\">National Institute of Hospitality<\/strong>.<\/li>\n<li data-start=\"4358\" data-end=\"4518\">Establishment of <strong data-start=\"4375\" data-end=\"4401\">5 University Townships<\/strong>, girls\u2019 hostels in STEM institutions, and telescope infrastructure facilities<\/li>\n<li data-start=\"4358\" data-end=\"4518\">India to host the first-ever <strong>Global Big Cat Summit<\/strong>.<\/li>\n<li data-start=\"4358\" data-end=\"4518\">Development of Buddhist Circuits in the North East Region.<\/li>\n<\/ul>\n<h3 data-start=\"4525\" data-end=\"4556\"><strong>9. Financial Sector Reforms<\/strong><\/h3>\n<ul>\n<li data-start=\"4559\" data-end=\"4646\">Setting up the High Level Committee on Banking for Viksit Bharat to align with India\u2019s next growth phase.<\/li>\n<li data-start=\"4559\" data-end=\"4646\">Incentive of \u20b9100 crore for the single issuance of municipal bonds of more than \u20b91000 crore and continuation of AMRUT-linked support.<\/li>\n<li data-start=\"4649\" data-end=\"4739\">Introduction of <strong data-start=\"4665\" data-end=\"4692\">market-making framework<\/strong> and <strong data-start=\"4697\" data-end=\"4719\">total return swaps<\/strong> in corporate bonds.<\/li>\n<li data-start=\"4649\" data-end=\"4739\">Restructuring Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).<\/li>\n<li data-start=\"4742\" data-end=\"4819\">Review of FEMA (Non-debt Instruments) Rules and restructuring of PFC and REC.<\/li>\n<li data-start=\"4822\" data-end=\"4932\">Increase in<a href=\"https:\/\/vajiramandravi.com\/current-affairs\/what-is-securities-transaction-tax-stt\/\" target=\"_blank\"> <strong data-start=\"4834\" data-end=\"4870\">Securities Transaction Tax (STT)<\/strong><\/a> on futures and options&nbsp;<\/li>\n<\/ul>\n<h3 data-start=\"4939\" data-end=\"4975\"><strong>10. Agriculture &amp; Allied Sectors<\/strong><\/h3>\n<ul>\n<li data-start=\"4978\" data-end=\"5042\">Integrated development of <strong data-start=\"5004\" data-end=\"5041\">500 reservoirs and Amrit Sarovars<\/strong>.<\/li>\n<li data-start=\"5045\" data-end=\"5155\">Targeted programmes for <strong data-start=\"5069\" data-end=\"5154\">fisheries, horticulture, cashew, cocoa, coconut, sandalwood, and animal husbandry<\/strong>.<\/li>\n<li data-start=\"5158\" data-end=\"5244\">Launch of <strong data-start=\"5168\" data-end=\"5186\">Bharat-VISTAAR<\/strong> integrating AgriStack and ICAR practices with AI system.<\/li>\n<\/ul>\n<h3 data-start=\"5247\" data-end=\"5369\"><strong><span style=\"font-size: inherit;\">11. Infrastructure &amp; Public Capital Expenditure<\/span><\/strong><\/h3>\n<ul>\n<li data-start=\"5430\" data-end=\"5522\">Continued sharp rise in <strong data-start=\"5454\" data-end=\"5470\">public capex<\/strong>, supported through REITs, InVITs, NIIF, and NABFID.<\/li>\n<li data-start=\"5525\" data-end=\"5613\">New <strong data-start=\"5529\" data-end=\"5560\">Dedicated Freight Corridors<\/strong>, 20 New National Waterways, and coastal cargo promotion.<\/li>\n<li data-start=\"5616\" data-end=\"5671\">\u20b92 lakh crore support to states under <strong data-start=\"5654\" data-end=\"5670\">SASCI Scheme<\/strong>.<\/li>\n<li data-start=\"5674\" data-end=\"5788\">Focus on Tier-II and Tier-III city infrastructure and logistics corridors&nbsp;<\/li>\n<\/ul>\n<h3 data-start=\"5795\" data-end=\"5835\"><strong>12. Energy Security &amp; Climate Action<\/strong><\/h3>\n<ul>\n<li data-start=\"5838\" data-end=\"5887\">\u20b920,000 crore for the<a href=\"https:\/\/vajiramandravi.com\/current-affairs\/carbon-capture-utilisation-and-storage-ccus-policy\/\" target=\"_blank\"><strong> Carbon Capture Utilization and Storage<\/strong> (<\/a><strong data-start=\"5852\" data-end=\"5867\">CCUS) Scheme<\/strong>.<\/li>\n<li data-start=\"5890\" data-end=\"6006\">BCD exemptions for lithium-ion batteries, solar glass, nuclear projects (extended till 2035), and critical minerals.<\/li>\n<li data-start=\"6009\" data-end=\"6114\">Excise duty relief on biogas-blended CNG to promote clean energy&nbsp;<\/li>\n<\/ul>\n<h3 data-start=\"6121\" data-end=\"6155\"><strong>13. People-Centric Development<\/strong><\/h3>\n<ul>\n<li data-start=\"6158\" data-end=\"6228\">Creation of a <strong data-start=\"6172\" data-end=\"6190\">Care Ecosystem<\/strong> with training of 1.5 lakh caregivers.<\/li>\n<li data-start=\"6231\" data-end=\"6317\">Launch of <strong data-start=\"6241\" data-end=\"6254\">SHE Marts<\/strong>, <strong data-start=\"6256\" data-end=\"6285\">Divyangjan Kaushal Yojana<\/strong>, and <strong data-start=\"6291\" data-end=\"6316\">Divyang Sahara Yojana<\/strong>.<\/li>\n<li data-start=\"6320\" data-end=\"6446\">Expansion of mental health institutions and trauma care centres at district hospitals<\/li>\n<li data-start=\"6320\" data-end=\"6446\">Supporting<strong> Artificial Limbs Manufacturing Corporation of India (ALIMCO)<\/strong> to scale up production of assistive devices, invest in R&amp;D and AI integration.<\/li>\n<\/ul>\n<h3 data-start=\"6453\" data-end=\"6508\"><strong>14. Ease of Doing Business &amp; Trust-Based Governance<\/strong><\/h3>\n<ul>\n<li data-start=\"6511\" data-end=\"6610\">Automated customs, single digital cargo clearance window, and extended validity of advance rulings.<\/li>\n<li data-start=\"6613\" data-end=\"6718\">Simplification of TDS\/TCS, extended return filing timelines, and decriminalisation of minor tax offences.<\/li>\n<li data-start=\"6721\" data-end=\"6836\">MAT rationalisation and immunity schemes to encourage voluntary compliance<\/li>\n<\/ul>\n<h3 data-start=\"6843\" data-end=\"6886\"><strong>15. Fiscal Discipline &amp; Deficit Targets<\/strong><\/h3>\n<ul>\n<li data-start=\"6889\" data-end=\"6981\">Fiscal deficit targeted at <strong data-start=\"6916\" data-end=\"6945\">4.3% of <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/gross-domestic-product-gdp\/\" target=\"_blank\">GDP<\/a> in BE 2026\u201327<\/strong>, continuing the consolidation path.<\/li>\n<li data-start=\"6984\" data-end=\"7073\">Debt-to-GDP ratio projected at <strong data-start=\"7015\" data-end=\"7024\">55.6%<\/strong>, with a medium-term target of <strong data-start=\"7055\" data-end=\"7072\">50\u00b11% by 2030<\/strong>.<\/li>\n<li data-start=\"7076\" data-end=\"7215\"><strong>16th <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/finance-commission\/\" target=\"_blank\">Finance Commission<\/a> Recommendation:<\/strong> \u20b91.4 lakh crore Finance Commission grants to states; vertical devolution share retained at <strong data-start=\"7167\" data-end=\"7174\">41%.<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><div class=\"ytb-video-wrapper\">\n        <div class=\"ytb-video-inner\">\n            <iframe \n                src=\"https:\/\/www.youtube.com\/embed\/q15M7tR1obs\" \n                width=\"560\" \n                height=\"315\" \n                frameborder=\"0\" \n                allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" \n                allowfullscreen>\n            <\/iframe>\n        <\/div>\n    <\/div><\/p>\n<h2><strong>Union Budget History<\/strong><\/h2>\n<p data-start=\"139\" data-end=\"450\">India\u2019s budgetary tradition began during the colonial era and has grown into a vital instrument guiding the country\u2019s economic and social policies. From the first budget in 1860 to modern times, it reflects India\u2019s evolving fiscal priorities and development goals.<\/p>\n<ul>\n<li data-start=\"502\" data-end=\"666\"><strong data-start=\"502\" data-end=\"530\">Colonial Era Beginnings:<\/strong> The first budget in India was presented on <strong data-start=\"574\" data-end=\"592\">7th April 1860<\/strong> by <strong data-start=\"596\" data-end=\"612\">James Wilson<\/strong>, the first Finance Member of the Viceroy\u2019s Council.<\/li>\n<li data-start=\"670\" data-end=\"813\"><strong data-start=\"670\" data-end=\"697\">Purpose in Early Times:<\/strong> Initially, the budget mainly focused on revenue collection and expenditure for administration under British rule.<\/li>\n<li data-start=\"817\" data-end=\"1036\"><strong data-start=\"817\" data-end=\"852\">First Post-Independence Budget:<\/strong> After India gained independence, the first budget was presented on <strong data-start=\"920\" data-end=\"942\">26th November 1947<\/strong> by <strong data-start=\"946\" data-end=\"973\">R. K. Shanmukham Chetty<\/strong>, setting the foundation for India\u2019s sovereign fiscal policy.<\/li>\n<li data-start=\"1040\" data-end=\"1197\"><strong data-start=\"1040\" data-end=\"1064\">Evolution Over Time:<\/strong> The Union Budget transformed from a simple statement of revenue and expenditure to a <strong data-start=\"1150\" data-end=\"1194\">comprehensive economic policy instrument<\/strong>.<\/li>\n<li data-start=\"1201\" data-end=\"1357\"><strong data-start=\"1201\" data-end=\"1230\">Policy and Social Impact:<\/strong> Today, the budget influences economic growth, social welfare, taxation, infrastructure development, and national priorities.<\/li>\n<li data-start=\"1361\" data-end=\"1544\"><strong data-start=\"1361\" data-end=\"1385\">Annual Significance:<\/strong> The budget is presented every year, on <strong data-start=\"1435\" data-end=\"1451\">1st February<\/strong>, marking the beginning of discussions on economic strategies for the upcoming fiscal year.<\/li>\n<li data-start=\"1548\" data-end=\"1732\"><strong data-start=\"1548\" data-end=\"1571\">Modern Innovations:<\/strong> Over decades, the budget has incorporated reforms like <strong data-start=\"1627\" data-end=\"1696\">digital reporting, gender budgeting, environmental considerations<\/strong>, and sector-specific allocations.<\/li>\n<li data-start=\"1736\" data-end=\"1911\"><strong data-start=\"1736\" data-end=\"1758\">Public Engagement:<\/strong> With growing transparency, the budget now engages citizens, experts, and industries through detailed presentations, press releases, and live sessions.<\/li>\n<\/ul>\n<h2><b>Union Budget Constitutional Provisions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> The term <\/span><b>\u2018budget\u2019<\/b><span style=\"font-weight: 400;\"> is nowhere mentioned in the <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/indian-constitution\/\" target=\"_blank\"><strong>Constitution of India<\/strong><\/a>.<\/span><\/p>\n<table style=\"width: 91.7828%; height: 810px;\">\n<tbody>\n<tr style=\"height: 25px;\">\n<td class=\"tb-color\" style=\"text-align: center; width: 90.982%; height: 25px;\" colspan=\"3\"><b>Union Budget Constitutional Provisions<\/b><\/td>\n<\/tr>\n<tr style=\"height: 25px;\">\n<td style=\"text-align: center; width: 9.0165%; height: 25px;\"><b>Article<\/b><\/td>\n<td style=\"text-align: center; width: 18.6283%; height: 25px;\"><b>Provision<\/b><\/td>\n<td style=\"text-align: center; width: 63.3372%; height: 25px;\"><b>Explanation<\/b><\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 112<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Annual Financial Statement<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Mandates the presentation of the Union Budget showing estimated receipts and expenditures of the Government of India for the financial year.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 113<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Voting on Demands for Grants<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Requires Lok Sabha approval for all expenditure demands of ministries; Rajya Sabha has no voting power.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 114<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Appropriation Bill<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Authorizes withdrawal of money from the Consolidated Fund of India after demands are passed.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 110<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/what-is-the-finance-bill\/\" target=\"_blank\"><strong>Finance Bill<\/strong><\/a> (Money Bill)<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Contains tax proposals; can be introduced only in Lok Sabha and cannot be rejected by Rajya Sabha.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 117<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Financial Bills<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Deals with bills involving expenditure from the Consolidated Fund other than Money Bills.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 266<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/consolidated-fund-of-india\/\" target=\"_blank\"><strong>Consolidated Fund of India<\/strong><\/a><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">All revenues, loans, and repayments go into this fund; money can be withdrawn only with parliamentary approval.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 267<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/consolidated-fund-of-india\/\" target=\"_blank\"><strong>Contingency Fund of India<\/strong><\/a><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Used to meet unforeseen expenditure, placed at the disposal of the President.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 109<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Role of <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/rajya-sabha\/\" target=\"_blank\"><strong>Rajya Sabha<\/strong><\/a><\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Rajya Sabha can only discuss the Budget and must return Money Bills within 14 days.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 111<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Presidential Assent<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Budget becomes law only after President gives assent to Appropriation and Finance Bills.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 76px;\">\n<td style=\"width: 9.0165%; height: 76px;\">\n<p><b>Article 116<\/b><\/p>\n<\/td>\n<td style=\"width: 18.6283%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Vote on Account<\/span><\/p>\n<\/td>\n<td style=\"width: 63.3372%; height: 76px;\">\n<p><span style=\"font-weight: 400;\">Allows government to meet expenses temporarily if Budget is not passed in time.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>Stages of Budget Session in Indian Parliament<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<ol>\n<li><b> Presentation of the Budget<\/b><span style=\"font-weight: 400;\">: 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.<\/span><\/li>\n<li><b> General Discussion<\/b><span style=\"font-weight: 400;\">: 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\u2019 concerns.<\/span><\/li>\n<li><b> Scrutiny by Departmental Committees: <\/b><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li><b> Voting on Demands for Grants:<\/b><span style=\"font-weight: 400;\"> 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 <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/consolidated-fund-of-india\/\" target=\"_blank\"><strong>Consolidated Fund of India<\/strong><\/a> is excluded and does not require voting.<\/span><\/li>\n<li><b> Passing of Appropriation Bill:<\/b><span style=\"font-weight: 400;\"> 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.<\/span><\/li>\n<li><b> Passing of Finance Bill: <\/b><span style=\"font-weight: 400;\">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 <a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/money-bill\/\" target=\"_blank\"><strong>Money Bill<\/strong><\/a> under Article 110 and requires Lok Sabha approval followed by Presidential assent to become the Finance Act.<\/span><\/li>\n<\/ol>\n<h2><b>Documents Presented in Parliament Along with the Union Budget<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><b>Budget Documents:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual Financial Statement (AFS):<\/b><span style=\"font-weight: 400;\"> The primary budget document detailing the estimated <\/span><b>receipts and expenditures<\/b><span style=\"font-weight: 400;\"> of the Government of India, prepared under <\/span><b>Article 112 of the Constitution<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Demands for Grants (DGs):<\/b><span style=\"font-weight: 400;\"> Ministry-wise <\/span><b>requests for funds<\/b><span style=\"font-weight: 400;\"> for specific services and schemes, which must be <\/span><b>voted upon by the Lok Sabha<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Finance Bill:<\/b><span style=\"font-weight: 400;\"> Introduces <\/span><b>new taxes or amendments<\/b><span style=\"font-weight: 400;\"> to existing tax laws to implement the government\u2019s revenue proposals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Appropriation Bill:<\/b><span style=\"font-weight: 400;\"> Authorizes the <\/span><b>withdrawal of funds from the Consolidated Fund of India<\/b><span style=\"font-weight: 400;\"> to meet expenditure approved through the budget.<\/span><\/li>\n<\/ul>\n<p><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/fiscal-responsibility-budget-management-act\/\" target=\"_blank\">FRBM Act<\/a> Mandated Statements (Fiscal Responsibility and Budget Management)<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Macro-Economic Framework Statement (MEFS):<\/b><span style=\"font-weight: 400;\"> Evaluates <\/span><b>economic growth prospects, fiscal balance, and external sector position<\/b><span style=\"font-weight: 400;\"> for the upcoming year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fiscal Policy Strategy Statement (FPSS):<\/b><span style=\"font-weight: 400;\"> Outlines the <\/span><b>government\u2019s fiscal policies and priorities<\/b><span style=\"font-weight: 400;\"> for the financial year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Medium-Term Fiscal Policy Statement (MTFPS):<\/b><span style=\"font-weight: 400;\"> Presents <\/span><b>medium-term fiscal targets<\/b><span style=\"font-weight: 400;\"> and strategies to ensure sustainable public finances over the next 3 years.<\/span><\/li>\n<\/ul>\n<table style=\"border-collapse: collapse; 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