Finance minister Nirmala Sitharaman Budget speech ends

Finance minister Nirmala Sitharaman ended her Budget speech. Watch her speech here:

Sensex drops 869 points, Nifty slides 294 points amid Budget presentation

Sensex tumbles 869.93 points to 81,399.85 amid Budget presentation; Nifty drops 294.9 points to 25,025.75

Small foreign asset holders get immunity from penalty, customs duty exemption

The government has announced that individuals who do not report foreign assets (other than immovable property) worth less than Rs 20 lakh will not face prosecution. This exemption will apply retroactively from October 1, 2024.

It has announced that basic customs duty will be removed on components and parts used to make civilian training and other aircraft. Raw materials imported for producing aircraft parts for maintenance, repair, or overhaul by defence units will also be exempt.

Finance minister proposes to exclude entire value of biogas while calculating excise duty payable on blended CNG.

Budget relief for foreign travel, students and more

The government has reduced the tax collected on overseas tour packages. The TCS rate has been cut to 2 per cent from the earlier 5 per cent and 20 per cent, and the minimum amount limit has been removed.

Students and patients will also benefit from the move. The TCS under the Liberalised Remittance Scheme for education and medical treatment abroad has been lowered from 5 per cent to 2 per cent.

In another change, the government has clarified tax rules for manpower services. Such services will now be treated as payments to contractors, attracting a lower TDS rate of 1 per cent or 2 per cent. This is expected to reduce confusion and make tax compliance easier for businesses and workers.

Finance minister says fiscal deficit seen at 4.4% of the GDP

Nirmala Sitharaman says, “In FY2026-27, fiscal deficit is seen at 4.4 per cent of the GDP. The fiscal deficit at 4.3 per cent of GDP in FY2027.”

Sitharaman stated that India’s debt-to-GDP ratio is estimated to be 55.6 per cent in the Union Budget 2026-27.

Changes in income-tax punishment

Finance minister spells out changes to income-tax punishment and impunity for different classes of taxpayers.

Sitharaman proposed extending the time limit for filing revised income-tax returns from December 31 to March 31, with the provision to do so on payment of a nominal fee.

Individuals filing ITR-1 and ITR-2 can continue to file till July 31.

Non-audit business cases and trusts will be allowed to file returns till August 31.

TDS on sale of immovable property by NRIs will now be deducted by the resident buyer, replacing the earlier requirement of quoting a TAN (temporary accounting number).

People can update returns even after reassessment proceedings completed.

Inter-cooperative society dividend income can be claimed as deduction under new tax regime.

New Income Tax Act review completed in record time, will come into effect from April 1

New Income Tax Act review completed in record time, will come into effect from April 1, 2026, says Finance minister Nirmala Sitharaman

Any interest from motor accident tribunal to be tax exempt

Three new All India Institutes of Ayurveda

"I propose to set up three new All India Institutes of Ayurveda; Upgrade Ayush pharmacies and drug testing labs and make available more skilled persons; Upgrade the WHO global Traditional Medicine Centre in Jamnagar," said Sitharaman.

Sitharaman pledges to support high value crops like coconut and cashew

"To support high value crops such as coconut, cashew in coastal areas," Sitharaman promised to work towards making India self-relaint in their production and trade.

She also proposed to launch Kehlo India Mission for sports sector for 10 years.

"To launch credit linked subsidy programme for animal husbandry. To deveop 15 archaelogical sites into cultural destinations," Sitharaman said.

Content creator labs to be set up in schools and colleges: FM

Content creator labs to be set up in 15,000 schools and 500 colleges, says finance minister Nirmala Sitharaman

Sitharaman, proposed to support professional institutions like ICAI, ICSI to design short term modular courses.

She also proposed the establishment of a National Institute of Hospitality to strengthen India’s tourism and hospitality sector. The institute will act as a bridge between academia, industry, and the government, she said.

"One girls hostel will be established in every district. Four telescope facilities for astrophysics and astronomy. Propose loan linked subsidy support for veterinary colleges. Pilot scheme to train 10,000 guides from 20 tourism spots," said the finance minister.

Sitharaman stressed on infrastructure growth with focus on Ties 2 and Tier 3 cities. She said, "We will continue to develop infrastructure in cities with over 5 lakh population, that is, tier 2 and tier 3 cities."

Government to set up 20 new national waterways in the next five years

In her opening remarks the Finance Minister said the government had pursued "far-reaching" reforms while keeping aatmanirbhar Bharat, or a self-reliant India, as the "lodestar" and worked to ensure "substantial strides in poverty alleviation" while transforming production systems with new technologies. "India will continue to take confident steps towards Viksit Bharat... but India must also remain deeply integrated with global markets," Sitharaman said.

Budget 2026 is 'yuva shakti' driven, inspired by 3 'kartavyas,' said the finance minister.

Sitharaman further siad, "Keeping Aatmanirbharta as a lodestar, we have built domestic manufacturing capacity, energy security and reduced critical import dependencies. Simultaneously, we have ensured that citizens benefit from every action of the Government, undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services to people. These measures have delivered a high growth rate of around 7% and helped us make susbstantial strides in poverty reduction and improvement in the lives of our people."

Government to set up 20 new national waterways in the next five years.

"To develop India as global bio pharma manufacturing hub, I propose Biopharma Shakti at an outlay of Rs 10,000 crore": Sitharaman

Finance minister proposes to raise capex target to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for current fiscal.

Sitharaman proposed the development of seven high-speed rail corridors as part of efforts to boost connectivity and infrastructure in India. Key routes include: Mumbai to Pune; Pune to Hyderabad; Hyderabad to Bengaluru; Bengaluru to Chennai.

Additional corridors are planned to further strengthen regional connectivity and economic growth across the country under the Union Budget 2026-27.

Sitharaman creates history with 9th consecutive Budget

Finance Minister Nirmala Sitharaman on Sunday makes history as she presents a record ninth consecutive Budget that is expected to unveil measures to sustain growth momentum, maintain fiscal discipline, and contain reforms that could buffer the economy from global trade frictions, including US tariffs.

This will take Sitharaman closer to the record of 10 budgets that were presented by former Prime Minister Morarji Desai over different time periods. Desai presented six budgets during his tenure as finance minister from 1959 to 1964, and four budgets between 1967 and 1969.

Former finance ministers P Chidambaram and Pranab Mukherjee had presented nine and eight budgets, respectively, under different prime ministers.

Sitharaman, however, will continue to hold the record of presenting the maximum number of budgets on the trot -- nine straight budgets under Prime Minister Narendra Modi.

She was in 2019 appointed as India's first full-time woman finance minister when Prime Minister Narendra Modi won a decisive second term. After Modi came back to power in 2024 for the third time, Sitharaman continued to retain her finance portfolio.

Sitharaman took charge of the Finance Ministry on May 31, 2019, and has steered the economy through the Covid-19 pandemic and geopolitical turmoil, making India the fastest-growing major economy in the world.

Sitharaman completed six years and eight months in office on January 31, 2026. On February 1, she will present a record ninth budget in a row.

Ahead of the Budget session, Prime Minister Narendra Modi had said Sitharaman presenting the Union Budget for the ninth consecutive time "will be recorded as a matter of pride in India's parliamentary history".

Former prime minister Morarji Desai had presented the Union Budget on 10 occasions, while P Chidambaram presented the Budget nine times, but not for consecutive years.

The other longest-serving Finance Minister at a stretch was C D Deshmukh, who took charge of the Ministry on June 1, 1950, and remained in office for about six years and two months.

Manmohan Singh, known for pushing economic liberalisation, was Finance Minister for about five years between June 21, 1990, and June 16, 1996.

Later as Prime Minister, Singh held the additional charge of Finance portfolio for a brief period once in 2008 and again in 2012.

The first Finance Minister of Independent India was R K Shanmukham Chetty.

With inputs from PTI

Cabinet approves Budget 2026

The Cabinet has approved Union Budget 2026. Finance Minister Nirmala Sitharaman will now proceed to the Lok Sabha where she will present her Budget speech. It is reported that there will be high focus on Part B of her speech which will elaborate short-term and long-term plans for Indian economy.

Don't have much expectations: Priyanka Gandhi on Budget 2026

Congress MP from Wayanad, Priyanka Gandhi Vadra, expressed scepticism about the Union Budget 2025, stating that she has "very little expectations" from the government.

 "I don't have much expectations, but let's see," said Priyanka Gandhi.

Gold and silver prices plunged up to 9%

Gold and silver prices plunged up to 9 per cent in futures trade on Sunday, hitting their lower circuit levels ahead of the Union Budget for 2026-27, as investors extended profit booking after the recent record-breaking rally.

The rout extended for the second straight day, with the April contract for gold futures declining Rs 13,711, or 9 per cent, to Rs 1,38,634 per 10 grams, touching its lower circuit level in the futures trade on the MCX.

In the previous session, the yellow metal plunged Rs 31,617, or 17.2 per cent, to close at Rs 1,52,345 per 10 grams, after hitting a record high of Rs 1,93,096 per 10 grams on Thursday.

Stock markets fluctuate in narrow range

Stock market benchmark indices Sensex and Nifty fluctuated in a narrow range in early trade on Sunday ahead of the Budget 2026-27 presentation.

After opening the day on a positive note, the 30-share BSE Sensex later fluctuated and quoted 13 points up at 82,282.82. The 50-share NSE Nifty skidded 7.90 points to 25,312.75 after opening marginally higher.

From the 30 Sensex firms, Sun Pharma climbed nearly 3 per cent after the firm posted a 16 per cent increase in consolidated net profit to Rs 3,369 crore in the third quarter ended December 31, 2025, led by growth across business segments.

Bharat Electronics, Power Grid, NTPC and HDFC Bank were among the other major gainers.

Sitharaman meets President for customary pre-Budget presentation meeting

Finance Minister Nirmala Sitharaman on Sunday called on President Droupadi Murmu before presenting her record ninth Budget in the Lok Sabha.

As per established tradition, the finance minister met the President at the Rashtrapati Bhavan before heading to Parliament.

Before going to the Rashtrapati Bhavan, Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta silk saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six Secretaries in her ministry.

Union Minister for Finance and Corporate Affairs Sitharaman, along with Minister of State for Finance Pankaj Chaudhary and senior officials of the Ministry of Finance, called on the President at Rashtrapati Bhavan before presenting the Union Budget.

Following the meeting, she headed for a Cabinet meeting that will formally approve the Budget for 2026-27.

Sitharaman continues with the tradition she set in 2019, carrying the budget speech in a 'bahi-khata', which she used after dropping the briefcase tradition.

The Finance Minister will present her ninth straight Budget, which is expected to unveil measures to sustain growth momentum, maintain fiscal discipline, and announce reforms that could buffer the economy from global trade frictions, including US tariffs.

To spur private investment and demand, New Delhi has rolled out a series of reforms in recent months, including consumption and income tax cuts, overhaul of labour laws and steps to open up the tightly controlled nuclear-power sector. More policy changes are expected in the budget.

"The nation is moving away from long-term problems to tread the path of long-term solutions. Long term solutions provide predictability that fosters trust in the world," Modi said on Thursday before the government's economic survey forecast growth of between 6.8 per cent and 7.2 per cent for the fiscal year starting in April.

India will continue with "next-generation reforms", as the next 25 years will be key to meeting the goal of making the South Asian nation a developed economy, he said.