DBT Bureau
Bengaluru, 1 Feb 2026
- The Finance Minister, Nirmala Sitharaman rises to present Union Budget 2026.
- Artificial Intelligence (AI) can work as force multiplier for Indian economy.
- The Budget proposes Biopharma Shakti with an outlay of Rs 10,000 crore for next five years.
- The Budget proposes ISM 2.0 in the Semiconductor space.
- The Budget proposes Rare Earth Corridor; boost mining in Odisha, Tamil Nadu, Kerala for rare earth self-reliance.
- Rs 40,000 crore outlay for Electronics Manufacturing in the Budget proposal.
- Rs 10,000 crore outlay for container manufacturing in India.
- Rs 10,000 crore SME Growth Fund will be created to boost MSME sector.
- The Budget proposes Rs 2,000 crore corpus for supporting micro-enterprises.
- Public Expenditure allocation to be increased to Rs 12.2 lakh crore this year.
- Mineral rich areas of Odisha like Talcher and industrial zones like Kalinganagar will be connected.
- Tier-II cities and religious centres will be further developed.
- High-level Committee for Banking Sector is proposed for complete review in the wake of India’s quest to be a developed nation.
- Forex market review will be done; FM says.
- The Budget proposes to set up Market Making mechanism for corporate bond market.
- The Budget proposes to set up a committee for boosting Indian services sector. The country aims to have 10% share of global services market by 2047.
- The Budget proposes creation of 7 high-speed rail corridors for promoting growth.
- Residents living outside India can now invest in Indian equities through portfolio plan. The Union Budget proposes individual investment limit to 10% from 5% for Persons Resident Outside India (PROIs).
- Gram Swaraj, fibre scheme to be launched as part of integrated textile push: FM says.
- Finance Commission Grant from Centre for states: Rs 1.4 lakh crore.
- Centre retains 16th Finance Commission proposal for 41% devolution to states: FM says.
- Fiscal deficit (BE) 2026-27: 4.3% of GDP; FY26 Fiscal Deficit: 4.4%.
- Market Borrowing: Rs 11.7 lakh crore for FY27; Gross Market Borrowing: Rs 17.2 lakh crore for FY27.
- Net Tax Receipts for FY27: Rs 28.75 lakh crore.
- Total Expenditure for FY27: Rs 53.5 lakh crore.
- Overseas Tour Packages will attract TCS rate to 2% from present 5%.
- The Budget proposes Safe Harbour Limit to Rs 2,000 crore from present Rs 300 crore for IT services.
- Safe Harbour Margin of 15.5% to be applicable to IT services: FM proposes.
- The Budget proposes to tax buybacks as capital gains for all kinds of investors.
- Securities Transaction Tax (STT) on Futures & Options is proposed to be raised: FM says.
- The Budget proposes to increase STT on Futures to 0.05% from present 0.02%.
- The Union Budget proposes a tax holiday until 2047 for foreign companies offering cloud services globally using Indian data centres.
- For companies seeking Advanced Pricing Agreements (APA), the process will be fast-tracked to two years, with a possible six-month extension: The FM says.
